Hi Kirk,
I personally have had a reduction in income.
In 2024 I had a lot of Treasuries earning 5.5% to 5.6% on 2 year Treasuries I bought over the secondary market.
Those now have dropped well below the 4% yield.
Since than I have placed the funds into Swabs "SNAXX", which held the 4.30% quite a while, but their higher yield holdings have expired and just last month dipped below 4%.
So us wicked folks who saved and invested are really beginning to see interest rates and the yields dropping 1.5 to 2.0 full rates below the Biden days of high inflation.
For a very long time I held back doing the Treasuries, but began to enjoy them when 4.5% yield became available.
For my two cents, Treasuries are a pain in the butt. They are difficult to track, as the yield always changes. I got paid twice a year, and had to track the payments quarterly to prevent the penalties which were increased to 6 - 7 percent interest rates for last year.
When you get 4.0 percent and inflation is 3%; and you have to pay taxes on the income quarterly, or get fined, I lose interest quickly.
In my view, the best way to grow wealth is to have your income the result of qualified dividend income.,
If you track your dividends received for the 3 months of the quarter, (times .20), plus short term gains times.40 , plus long term capital gains times .2 you have it very close. AND tax efficient.
If your income gets over 675k and the Obama care surcharge of 4.1% over that threshold, you may be losing money on Treasuries.
I don't worry about it, because a big ugly dip that offers up 30%, as a discount, is what I'm always looking for.
Sort of like that big ugly black vulture waiting up on a barren tree. <smile>
Bob |
