1641
Passive income
(lemmy.world)
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 04 Oct 2024
1641 points (99.1% liked)
Microblog Memes
5778 readers
878 users here now
A place to share screenshots of Microblog posts, whether from Mastodon, tumblr, ~~Twitter~~ X, KBin, Threads or elsewhere.
Created as an evolution of White People Twitter and other tweet-capture subreddits.
Rules:
- Please put at least one word relevant to the post in the post title.
- Be nice.
- No advertising, brand promotion or guerilla marketing.
- Posters are encouraged to link to the toot or tweet etc in the description of posts.
Related communities:
founded 1 year ago
MODERATORS
A year ago, the expected annual yield on the NYSE was 6-8%. The treasury return for a year was 4%.
"I don't know if my plane will crash, so I drive everywhere in order to avoid that risk".
The expected yield on market investments is higher than the expected yield on treasuries. The real value in treasuries is their convertibility to cash, hedged against the risk of inflation. You are losing money long term if you are putting your retirement income in treasuries.
The point of low-yield low-risk bonds is that they can be quickly converted to cash when better investment opportunities arise. Alternatively, to be spent on consumer goods and services.
Who said anything about retirement?
And if you know why people buy treasuries then why did you ask?
You're using hindsight to pretend like there's no reason to buy treasuries while also demonstrating an understanding of why people do. You'll forgive my confusion.
Also, the NYSE had an expected return of 6-8%. That was not at all a guarantee; we didn't know that. My statement holds true.