You don’t want to let the perfect get in the way of the good. Specifically, when it comes to your retirement life, you want to get paid to be in the markets. You don’t want to miss out, hoping to get in at the “right” time. When looking at the current interest rate environment and the risk-free rate of return on T-Bills, it’s hard to ignore what the two-year is paying—close to five percent as of yesterday.
Getting five percent on your money locked in for two years is nice, considering how far we’ve come from a zero-interest rate policy. Finally, rates have normalized where money isn’t free, even if the Fed wants to cut them. (We’ve seen this movie before. See the Free Money Truck rolled out by the Bernanke Fed in the picture below.). If they do get their way, it would be a shame to look back on today and wish you had taken some action.
You deserve to be paid. You’re the one taking all the risk. It’s called investing for a reason. The free money is over—for now. I want you to be an inflation fighter with dividend-paying stocks and an interest hunter and gatherer. This is about your survival, not anyone else’s.
Action Line: When you’re ready to talk, let’s talk.
Look at the food inflation above. Prices are significantly higher today than they were just a few short years ago. You have to be an inflation fighter to cope with higher prices like these.
Investors buying two-year Treasuries today can find yields of nearly five percent.
Originally posted on Your Survival Guy.
