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nrj3697 t1_j6obeao wrote

Reply to comment by TeflonShawn42069 in Why dont people talk about Tbills, Bonds, and CD's anymore? I remember my grandmother who was an accountant had tons of paper bonds for me when i turned 18. by [deleted]

Im wondering if doing CD ladders would be a plus right now for the long term while rates are high and lock them in.

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lucky_ducker t1_j6p5o9y wrote

T-Bills are very close to CD rates right now, and are far more liquid than CDs.

Money market funds (another unloved investment) are paying around 4.3% compared to 4.65% for T-Bills, and are not only as liquid, they are immune to interest rate risk.

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nrj3697 t1_j6paw1z wrote

What do you mean by interest rate risk

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Six-mile-sea t1_j6oh89r wrote

I’ve been laddering t-bills which have been doing way better than cd’s. Pulled the plug to close distressed RE now that prices have dropped out of the stratosphere.

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TeflonShawn42069 t1_j6om7zn wrote

I like cd ladders too, but I'm staying short-term until there is a fed meeting where the rate either doesn't change or goes down.

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mylord420 t1_j6p1whm wrote

For the long term you want equities still. Nothing will beat stocks for the long run.

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nrj3697 t1_j6par4r wrote

Very true. I’m thinking like less than 5 years

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