Should You Invest in Long-Term CDs and Bonds? Find Out Now!

Is now the time to invest in long term bonds or CDs? I look at longer term CDs and compare them with Treasuries and Bond ETFs. I look at some of the popular low fee bond ETFs at Vanguard and compare them to give you an idea of what is in them, how risky they are, and why you might choose one bond ETF over another.
With the recent drop in the CPI many analysts believe the Federal Reserve will raise rates one more time. If interest rates stop rising or even falling in a recession or with more bank failures, it may be a good time to lock in longer term rates if you believe interest rates have peaked.

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The ideas expressed on this channel are purely opinions and should not be regarded as objective information. Nothing on this channel is a recommendation to buy or sell securities. Do not assume that facts and numbers in any video are accurate. Always do your own due diligence.

[Hearmorestories]

Well presented! Next time might be worth talking about distributions and tax implications (also). The narrative on where interest are going has become spastic...nothing is predictable right now. Saudi's cut production and oil jumps. Next quarter prices will be higher and then what will happen??? Keep up the good work; really enjoy your videos :)

[rdua]

Thank you - great video.
2 questions / comments:
1 ) How would you compare TLT and EDV?
2 ) As you said longer duration is worth holding for capital appreciation if you are expecting a drop in treasury yields. The risk with corporate bonds is that they can move paradoxically to treasuries as they price in the higher risk of default in the poor economy scenario in which fed funds rate would be cut. So it would not be a good idea to hold corporate bonds if you want capital appreciation. Just my opinion

[guyalan]

Excellent summary.
No mention of I savings bonds - you do not own?
Composition of your own fixed income portfolio and Average maturity?

[VikashKumar-odnb]

Can I buy and sell TLT anytime or I have to hold it longer as it invests into long term treasury notes ?

[DaveSchmrdr]

Well explained. I think that we are near peak in bond rates, so I'm interested in EDV, VGLT and VGIT. I own just a few shares of EDV. I own a modest amount of VGLT. That is my big bet on the rates. As my Treasury Bills run off, I'm buying one year TBs, and I'm buying VGIT. Very modest now, but is building. I use my taxable settlement account and SOHO for money I may need soon, but probably won't. Until a year ago, I didn't give a hoot about bonds. I kept that money in my savings account, earning next to nothing. But I'm pretty old, so liquidity and a good funeral director are good to know.

[romanhut]

Why does everyone down CDs as long term options ? I feel safer using CDs and high yield savings accounts . It’s just safer and I’m not one to keep track of the stock markets everyday nor wish to worry about my money consistently . Just my opinion .

[martintheguitarist]

These bond funds are way too sensitive to interest rates, even the short duration one. Gold is less volatile and has better returns. If someone is able to predict where rates will be in a few years then he is such a genius that can probably become a billionaire from doing something other than buying bonds. These bond funds are for dumb ass pension funds whose members don't care/don't understand and whose managers only care about satisfying the regulators/getting their fees.

[romanhut]

Why does everyone down CDs as long term options ? I feel safer using CDs and high yield savings accounts . It’s just safer and I’m not one to keep track of the stock markets everyday nor wish to worry about my money consistently . Just my opinion .