Bond Investing Basics | Buying Bonds When Yields Are High (Or Higher For Longer) 2024

What will your bond portfolio look like when the Fed starts cutting rates? Have you been laddering & building your bond portfolio systematically, intentionally & knowledgeably as rates rise or stay higher for longer OR will you be trying to catch a falling knife when rates come down? Watch on to see how you can learn about bond investing BEFORE the Fed starts cutting rates!

📢 Get 15% off our brand-new bond courses thru 11:59PM ET on 4/30/2024 - enter coupon code bondfans2024 at checkout - see links below for more details!

#jenniferlammer #bondbeginners #bondmasters

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📢 Get 15% off our brand-new bond courses thru 11:59PM ET on 4/30/2024 for Financial Literacy Month - enter coupon code bondfans2024 at checkout - see links below for more details!

Bond Beginners (our foundational-level bond course):

Bond Masters (our intermediate-level bond course):





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Here is the overview for Bond Beginners:

1. Bond Basics

What A Bond Is & How A Bond Works
Why Invest In Bonds
New Issue vs Secondary Market Bonds
Interest Rates & Bond Prices
Current Yield & Yield To Maturity
Always Remember This!
Buying At Par, Above Par & Below Par
Different Types Of Bonds
Wrap-Up

2. The Risks Of Bond Investing

Seven Key Bond Risks
Credit Risk
Interest Rate Risk
Reinvestment Risk/Call Risk
Inflation Risk
Liquidity Risk
Currency Risk & Country Risk
Bond Risk Mitigation Strategies
Wrap-Up

3. US Treasuries Overview

What Are US Treasuries
Why Invest In Treasuries
Where Can You Buy Treasuries
How Are Treasuries Taxed
Wrap-Up

4. Treasury Bills

What Are Treasury Bills (T-Bills)
When Do T-Bill Auctions Happen
Where Should You Buy At Auction
Auto-Roll When Buying At Auction
Where To Find Recent Auction Results
High Rate vs Investment Rate
Reopening Auctions
Cash Management Bills (CMBs)
Buying & Selling On Secondary Market
Wrap-Up

5. Treasury Notes & Bonds

What Are Treasury Notes & Bonds
When Do Auctions Happen
Buying Treasury Notes & Bonds
Auction High Yield vs Interest Rate
Floating Rate Notes (FRNs)
Treasury Zeros (STRIPS)
Wrap-Up

6. TIPS (Inflation-Protected)

What Are TIPS
When Do TIPS Auctions Happen
Nominal vs Real Yields
Negative Yields
How Do You Adjust TIPS For Inflation
Taxes On Phantom Income
Secondary Market Liquidity
Wrap-Up

7. I-Bonds (Inflation-Protected)

What Are I-Bonds
How Does I-Bond Interest Work
I-Bonds vs TIPS
The Annual I-Bond Limit
Wrap-Up

8. Agency Bonds

The Universe Of Bonds
What Are Agency Bonds
How Are Agency Bonds Taxed
Treasuries vs Agencies
Who Might Want To Consider Agencies
Yield-To-Call & Yield-To-Worst
Where Can You Buy Agency Bonds
Wrap-Up

9. Municipal Bonds

Our Bond Universe Gets More Complex
What Are Municipal Bonds
How Safe Are Munis
How Are Munis Taxed
The De Minimis Rule
Social Security & Medicare Premiums
Treasuries, Agencies & Munis
Who Might Want To Consider Munis
Wrap-Up

10. Corporate Bonds

Our Bond Universe Is Complete
What Are Corporate Bonds
How Safe Are Corporates
Corporate Bond Hierarchies
Five Key Features Of Corporate Bonds
How Are Corporates Taxed
Treasuries vs Corporates, Etc.
Who Might Want To Buy Corporates
Wrap-Up



Here is the overview for Bond Masters:

1. Stocks vs Bonds

Historical Performance
Are Bonds Really Less Volatile
Why Invest In Bonds
Accumulation vs Decumulation
Allocation of Stocks vs Bonds
Wrap-Up

2. Which Bonds Might Be Right For You

Treasuries & Other Types of Bonds
Nominal vs Real Yields
Inflation vs Non-Inflation-Protected
Taxable vs Tax-Advantaged Accounts
Wrap-Up

3. Bond Ladders & Other Bond Strategies

Normal vs Inverted Yield Curve
What Is A Bond Ladder
5 Important Bond Laddering Questions
Laddering When Rates Are Rising
Laddering When Rates Are Falling
Laddering When Rates Are Uncertain
What Is A Bullet
What Is A Barbell
Wrap-Up

4. Holding to Maturity vs Selling Early

Why Hold to Maturity
When To Sell Early Before Maturity
Tax Implications Of Selling Early
Wrap-Up

5. Individual Bonds, Bond Funds, Etc.

Why Buy Individual Bonds
Why Buy Bond Funds
Bond Fund Considerations
Key Bond Fund Concepts
CDs vs Treasuries
Other High-Yield Investments
Wrap-Up

6. Our B.E.S.T. Model Portfolios By Age

Our B.E.S.T Model Portfolios By Age
Model Portfolios In The Industry
B.E.S.T Model Portfolio Difference
How Much Do You Need To Retire?
How I Use The Rules of 100, 110, & 120
B.E.S.T Model Portfolios (20s)
B.E.S.T Model Portfolios (30s & 40s)
B.E.S.T Model Portfolios (50s & 60s)
B.E.S.T Model Portfolios (70s+)
Wrap-Up

7. The Decumulation Phase

What Is The Decumulation Phase?
Bear Markets & Recessions
What Can You Do In Bad/Bear Markets
Decumulation Tax Considerations
The 4% Rule
The Bucket Strategy
The Flooring Approach
Jen’s Bucket Strategy With A Twist
Wrap-Up



Sources:



Thanks for visiting our personal finance channel! We hope this content will help fast-track your financial journey! Everyone's financial journey is different. Please note that: 1) there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances & 2) we will not ask you to call us or send us money in the comments on this channel or any of our other social media accounts, so if you see comment(s) along those lines, it is most likely spam - PLEASE DO NOT ENGAGE WITH SPAMMERS OR GIVE OUT YOUR PERSONAL INFORMATION FOR YOUR OWN SAFETY.

[rogerrocco]

I’m not buying
I bonds now because there’s too many strings attached that tie up the money. I am buying a Vanguard Government Securities Fund that is paying 5.28% with interest paid monthly. I am retired so I need income now.

[mattflower]

When is the next Bond Masters live? I just caught the other one on replay.

[stanbecks]

Age is my agenda I must consider. Thanks Jennifer "my teacher".

[TomJones-ylki]

Comment for you, I havn't heard you talk about T-bills being state tax free and I live in California which does make a difference so why one would be living in Cali... and be buying CD's just to pay income tax on the interest?

[KayKaym]

I built my one year T-Bill ladder early. I only made 4.33% on T-Bills in 2023, but now I'm looking at 5.15% in 2024. When rates drop, I will effectively lag the interest rates by a full year. I plan to continue purchasing 52-week T-Bills until the Fed begins to drop interest rates. At that point, it's time to go back into equities. At every T-Bill maturity event, I'll invest that money into some kind of equities ETF that follows the market index. I am currently in the process of slowly accumulating TLT. When the market is at the point where it believes the Fed will drop interest rates, TLT should start to go back up and should be able to reach $120 again. At that point, I'll begin to dump the shares I've held for longer than one year.

[johnsmith-dmtq]

interesting, i have been struggeling to figure out if i should do 10 5k investments one due every 2 months. or, 5 10k investments due every 4 months. or if i finally go out further....i cant figure out if it pays better to do a 1 year with coupon or without, same par value but i cant figure out the maths.

[fire]

I thought it was funny when talking heads were predicting 6 or 7 rate cuts this year I always said BS.

[fantasyjazz]

hello, been follow your youtube sometime, but want to check estate tax will be apply on foreginer who holding us bond?

[barry]

Thank you Jennifer! Clear and concise as always!

[petrao]

I've been laddering, and I continue to do so if rates keep rising.

[stephtraveler]

inflation is still out of control. I can't imagine ANY rate cuts this year.
The fed policies are not effective because they are not measuring true root inflation issues.
My guess is once everyone tires of the daily headlines of middle east fighting, the market will return to new highs and bond rates will stay high for the next year due to inflation.
We are living in the golden age of low risk, high return treasury investments. Take advantage of it now.

[bbhillfarm]

Hi Last night I bought bond basics to check it out - fantastic- I was offered opportunity to buy bond masters for $100 off but then it disappeared- help - my mistake! how can I find link to buy it at discounted price - it’s been less than 12 hours since buying bond basics which thoroughly whetted my appetite for bond masters!

This is so much fun and productive to be joining this community Thank you for sharing your knowledge and experience with us.

[PatamaGomutbutra]

Since shelter inflation is 75% of inflation without significant housing correction or crash - it seem no reason FED able to cut rate.

[michaelbrennan]

Thank you Jennifer and team. I was really here for the pizza party 😂. Maybe some chicken wings as well.

[EarInn]

Are the videos that are part of the courses the same as the free videos? Even if they are, I'm sure that your guidance would make the courses valuable.

[reuvenrosenbloom]

We are much later adults not good at computers at all can u suggest anyone that can help us invest ...we have tried to understand but it's very difficult 😢

[pauljoseph]

I've been buying steadily since last fall, and pretty much reached my goal aka out of money to put into bonds and notes. I'm also cycling my "cash" into Treasury Bills to get those higher rates. The thing is, interest rates dropping may not affect Treasuries as much, because they still need to finance the growing deficit. Over the last couple of years, the Treasury has been relying primarily on Boomers and even Gen X workers who are approaching retirement to buy all this paper. If rates on Treasury products drop, that's likely to end abruptly.