Junk bonds turn up the risk for retirees
In a “normal” interest rate environment, a retiree fortunate enough to have $1 million could get about $45,000 a year in income by investing in 10-yearTreasury bonds without risking principal if held to maturity. Yields have recently risen from historic lows, but in today’s low-rate world, an investor with $1 million can only get an […]
ZIRP and bond risk
ZIRP is an acronym that stands for “zero interest rate policy.” For the last five years, the Fed has employed a zero interest rate policy to help stimulate the economy. Investors need to understand all of the risks that their hard earned investment dollars can be exposed to. Most investors buy stocks and stock mutual […]