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☆ Bonds offer risk-free returns of over 5% for the first time in two decades. Here's how capitalize on the easy money without tying up your cash for years at a time.
▼ + stars: | 2023-08-11 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

Short-term interest rates are the highest they've been since the early 2000s. You can plug $1,000 into each of the six Treasury bill durations of one year or under, or whatever combination you prefer. A 5.36% annualized interest rate on a $1,000 bond equals $53.60. Since it's a 1-month bill, you then divide then that by 12 to get the annualized rate. It's unclear where interest rates go from here.

Persons: Andrew Crowell, Davidson, Crowell, Charles Schwab Organizations: Treasury, D.A, Fed, Vanguard

I used to be worried about needing money I had left in a CD — but CD laddering helps with that. This ensures that as CD rates fluctuate, I'll have access to great APYs that become available. Since my CD ladder is set up with a mix of short-term and long-term CDs, once the short-term CDs mature, I replace them with long-term CDs instead of short-term ones. As the short-term CDs mature and are reinvested in long-term CDs, the original long-term CDs will become closer to maturing. That way, when a CD comes to term, I can scope out other CD options with higher rates and reinvest the cash into that new CD.

Persons: I've, I'd, I'm Organizations: Service Locations: Wall, Silicon

☆ The Federal Reserve is likely to keep rates high. Here's a strategy to generate income and reduce risk
▼ + stars: | 2023-08-03 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Near-dated Treasurys have seen a sizeable boost since the Federal Reserve has embarked on its rate-hiking campaign, and a strategy that allows investors to generate income in the short term is taking off. To that effect, the firm this week launched a trio of Treasury bond laddering strategies: six-month, 12-month and 24-month offerings, managed by its Wasmer Schroeder Strategies team. "There are two bond investors: total return and income," Lafferty said. "For income investors, those higher yields are still at the shorter end, and these might be people who are pulling income out of their portfolio or retirees who need to spend their current income," he added. For investors who are thinking longer term, Schwab offers 5-year to 15-year ladders, as well as a 1-year to 5-year variety.

Persons: Bond, Charles Schwab, Warren Buffett, US3M, David Lafferty, Schroeder, Lafferty, Schwab Organizations: Federal Reserve, Schwab Asset Management, Treasury

☆ Where to Move Your Savings Now That the Fed Has Raised Rates Even Higher
▼ + stars: | 2023-07-26 | by ( Steve Garmhausen | ) www.wsj.com time to read: +5 min

But rates on savings accounts and certificates of deposit could start to fall before long—so it might make sense to lock in today’s rates soon. That means that it could become a lot harder to find savings accounts and certificates of deposit paying the most attractive rates. “I think we’ve already broken past the peak,” says Sander Read, a financial advisor in Winter Park, Fla.Where are interest rates headed next? What do higher rates mean for savings accounts and CDs? The reason: Banks that need to raise more cash to make loans are more likely to dangle higher interest rates to get it.

Persons: Steve Garmhausen, ”, Sander Read, Keith Larkin, Ken Tumin, “ Organizations: Fed, Federal Deposit Insurance Corp, Bank, Treasury Locations: Winter Park, Fla, San Francisco, Bank

☆ The Fed’s expected rate hike is about to sweeten yields on these investments
▼ + stars: | 2023-07-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

The Federal Reserve is widely expected to boost interest rates by another quarter percentage point Wednesday afternoon – and that's terrific news for fixed income investors hoping to grab a little more yield. Since March 2022, the central bank has raised rates 10 times – with July's expected hike marking the 11 th increase – to cool inflation. Consider that during the week of March 11, 2022, the rate on the 2-year Treasury note was 1.75%, according to Refinitiv. Investors who wish to squeeze a little more interest income from their cash holdings have opted for Treasury bills, with the 6-month bill yielding 5.5%. By buying multiple notes of different maturities, investors can "ladder" these Treasurys and reinvest the proceeds from maturing bonds into longer-dated issues.

Persons: Greg McBride, maturities, tradeoffs, McBride, SLM —, Sallie Mae —, Nick Wells Organizations: Federal Reserve, Investors, Treasury, Bank of Locations: Bank of Indiana, Treasurys

☆ Best 1-Year CD Rates
▼ + stars: | 2023-07-18 | by ( Martha C. White | ) www.wsj.com time to read: +7 min

Best 1-year CD ratesToday’s market for one-year CDs is big and very competitive—good news for yield-seekers. To help you find the best yields you can get today, here are some one-year CDs with the highest APYs currently on the market. These picks reflect the best available one-year CD rates as aggregated by DepositAccounts, com, which tracks roughly 275,000 rates at more than 11,000 banks and credit unions, and Buy Side from WSJ’s own research. Increased competition for your dollars today means that the best one-year CD rates come very close to tracking the movement of the Fed’s benchmark federal-funds rate, says DepositAccounts.com founder Ken Tumin. We concentrated on rates available across the U.S., although you might find a great one-year CD rate at a local community bank or credit union near you.

Persons: Martha C, Banks, Ken Tumin, Tumin, “, ” Tumin, you’re, ”, Kathy Carey, Baird Organizations: Federal Reserve, FDIC, National Credit Union Administration Locations: U.S

☆ Where to invest $10,000 right now if you want to generate the most income, without a ton of risk
▼ + stars: | 2023-07-12 | by ( Michelle Fox | ) www.cnbc.com time to read: +6 min

Meanwhile, preferred securities can see yields around 7%. The Fed's rate hikes also sweetened yields on money market funds and certificates of deposit . Yet what is the best avenue for someone who is looking to generate the most income on a $10,000 investment — without taking on a lot of risk? The ICE BofA Fixed Rate Preferred Securities index, which tracks the performance of fixed-rate preferred securities, has a yield to maturity of 7.1%. "Right now you can't do better … than just owning short- to intermediate term high-grade fixed income," he said.

Persons: There's, Tom Graff, Mitch Goldberg, Goldberg, laddering, you'll, Ian Weinburg, Weinberg, Tim Ghriskey, Snyder, haven't, Ghriskey, Bonds, he'd, Graff Organizations: Treasury, Federal Reserve, Federal, CNBC Pro, Family Wealth, Pension Management, Ingalls, ICE, Securities, Citigroup, XIII, Index, SEC Locations: Baltimore, Melville , N.Y, Woodbury , N.Y, New York, Treasurys, preferreds

☆ For companies sticking with remote work, the rules for success are becoming clear
▼ + stars: | 2023-06-22 | by ( Rachel Curry | ) www.cnbc.com time to read: +7 min

For organizations that are ready to move past temporary remote or hybrid work arrangements, remote work "maturity" is the final step. Companies with highly effective documentation are more than twice as likely to report that their company maximizes the positives of remote work, according to the Gusto Hybrid Work Playbook. For early remote work adopters, rigorous documentation has been key from the beginning. Nearly half of companies who report having clear goals say remote or hybrid work has been positive for company performance. Reeder says while tools can help make remote work more effective, leaders should not use software to mask inefficiencies.

Persons: Annie Dean, Dean, JJ Reeder, " Reeder, Reeder, Brex, Angela Crossman, it's, Crossman, Upwork, Atlassian Organizations: Companies, malleability Locations: Atlassian, Upwork, San Francisco, Chicago

☆ Stocked up on short-term T-bills? Here’s why it might be time to buy longer-term bonds
▼ + stars: | 2023-05-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Short-term Treasury bills have garnered investors' attention as yields pop amid the Federal Reserve's rate hiking campaign and debt ceiling tensions in Washington. This doesn't necessarily mean it's time to cut bait on your short-term bond holdings, however. Issues with longer duration are likely to see greater price fluctuation in response to changes in interest rates. The inverted yield curve also resulted in higher yields for short-term issues, but sharp price declines. Some investors built ladders — that is, a portfolio of bonds with different maturities — to take advantage of those higher yields.

Persons: Paul Olmsted, Bonds, Olmsted, we've, Brenna McLoughlin, Kevin Brady, Callie Cox, Cox Organizations: Morningstar, Treasury, Wealthstream Advisors, Wealthspire Advisors Locations: Washington

☆ Should You Lock in Today’s CD Rates?
▼ + stars: | 2023-05-25 | by ( ) www.wsj.com time to read: +8 min

Buying a long-term CD means you could lock in today’s generous rates for years to come. Today top CD rates on three- to five-year CDs are 4% to 5%, the highest they have been since the mid 2000s. Deciding when to lock in CD rates is always a balancing act—and even more so in today’s climate of high economic uncertainty. Second, they let you lock prevailing interest rates, so if rates fall you’ll continue to earn the rate you signed up for, for the entire term of the CD. For instance, CIT Bank’s no-penalty CD has an APY of 4.9%—just a hair below the 5% APY its top regular CD offers.

☆ The negative market turnaround is all about one thing: Rates
▼ + stars: | 2023-02-27 | by ( Alex Harring | ) www.cnbc.com time to read: +5 min

Investors looking for something to blame the recent stock market swoon need only to look at the bond market. Given this recent trading action, market technicians are looking at rates as the key catalyst for stocks going forward. US10Y YTD mountain 10-year in 2023 This back and forth raises questions on who should investors listen to: the stock market, or bonds. The stock market has been viewed by market participants as expecting the Fed to successfully cool inflation while avoiding a recession, a scenario referred to as a "soft landing." "The upward pressure on the terminal rate had an adverse effect on the stock market.

☆ The favorite trade today of Steve Eisman, from 'The Big Short,' is incredibly simple
▼ + stars: | 2023-02-27 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

Renowned investor Steve Eisman, who called and profited from the 2007 housing crisis, revealed his favorite trade in the rapidly changing investing landscape — short term Treasurys. "We're buying bonds, especially Treasurys," Eisman, senior portfolio manager at Neuberger Berman, said Monday on CNBC's " Squawk Box ." "Assuming that we take the Fed at its word, which is obviously questionable, rates will stay higher for much longer," Eisman said. The "Big Short" investor believes that the sharp ascent in yields has created a new paradigm in the investing world, making growth-oriented, technology stocks less appealing. Laddering bonds means building out a portfolio of issues with different maturities and then reinvesting the proceeds as the bonds mature.

☆ Six-month Treasury yield tops 5%. Here’s how you can put your idle cash to work
▼ + stars: | 2023-02-23 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

Rates on U.S. Treasurys have spurted even higher, and that means you don't have to look too far to safely grab some yield for your cash holdings. The yield on six-month Treasurys have surpassed 5%, and even 1-month bills tout rates of 4.5%. Further, you can put the same concept to work with short-dated Treasurys to get a little more yield on your cash and do so safely. Risk management and ladders When interest rates are rising, you can reinvest the proceeds of the maturing bonds in your ladder into a longer-dated issue. In a falling rate environment, you can count on the bonds that have already locked in the higher yields.

☆ How to boost your portfolio income when companies cut dividends
▼ + stars: | 2023-02-22 | by ( Michelle Fox | ) www.cnbc.com time to read: +6 min

Dividend stocks have long been a way for investors to earn income, but recent cuts may have some concerned about what to do next. However, those recent decreases are unusual, said Howard Silverblatt, senior index analyst at S & P Dow Jones Indices. Where to look for income Corporate dividends are just one source of income, and that income should be just one part of your overall portfolio, said certified financial planner Jamie Hopkins, managing partner of wealth solutions at Carson Group. Dividend funds Another option is an exchange-traded fund composed of dividend stocks. WDIV YTD mountain SPDR S & P Global Dividend ETF's year-to-date performance The ProShares S & P 500 Dividend Aristocrats ETF , also tracks the index.

My interest rates will grow over time if I don't touch the money in my CDs. And as we're in an environment with rising interest rates, I've also decided to open several certificates of deposit. I was learning about different ways to make the most of my savings, and interest rates were hovering around 5%. I'm enjoying some flexibility by laddering my CDsAnother tactic that I employed nearly two decades ago that I'm bringing back is CD laddering. And as there's a chance that interest rates might increase again, I can potentially enjoy a higher interest rate on the same term down the line.

☆ Bond yields are hot, but be smart how you invest. Here’s where to begin
▼ + stars: | 2023-02-06 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +6 min

Bond yields and prices move inversely to each other so, as rates rose, prices tumbled – and did so at an inopportune time since stocks were suffering, too. Thus, they have higher interest rate risk and greater price fluctuation. He likes short-term Treasury bond funds and ETFs. Another way to mitigate interest rate risk is to use a barbell: You hold equal amounts of shorter and longer-dated issues. "You don't have to reach too far in terms of credit risk and interest rate risk to capture healthy yield in today's environment."

Not only can you have multiple life insurance policies, but you can purchase multiple at once. I talked to some life insurance experts to find out when it makes sense for individuals to have several life insurance policies. Life insurance agent Steven Ogle of Redwood Life Group says it's fairly common for families to invest in a standard, 20-year term life insurance policy when each of their children are born. Multiple policies for multiple needsFinally, financial planner Jaimin Garabedian of Assurance Wealth Management says many people have multiple life insurance policies because each type serves a different purpose. Garabedian adds that there are those who use life insurance for certain "living benefits" such as long-term care or the tax-advantaged growth some life insurance policies offer.

When the Federal Reserve cut interest rates, I moved my savings into CDs and corporate bonds. At the time, I kept my emergency savings in a high-yield savings account, with some additional savings in a regular savings account. Pretty soon, my high-yield account stopped seeming so "high-yield," with interest rates dropping from 2.50% to 0.50% over the course of the year. I employed a laddering strategy, spreading my money over a number of CDs with different interest rates and terms. Because of this, I decided to move all of my emergency savings back into my high-yield savings account, so it's all in one place and is more easily accessible.

When it comes to choosing a savings strategy, there is no one-size-fits-all solution. I often revisit and readjust my savings strategy in response to larger economic factors, and I did that a lot during the COVID-19 pandemic. At the time, I kept my emergency savings in a high-yield savings account, with some additional savings in a regular savings account. When reevaluating your own savings strategy, it's important to consider your risk appetite and time horizon. Reevaluating your savings strategy regularly is an important part of maintaining your financial health over time.

☆ Interest rates are high. Here’s a relatively safe way to squeeze more from your cash
▼ + stars: | 2023-01-25 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Be aware that money market accounts offered by a bank are subject to protection from the Federal Deposit Insurance Corp. This isn't the case with money market funds, which can't guarantee that you won't lose money. When shopping for a money market fund, look for offerings that hold high quality underlying investments, and be sure to keep an eye out for fees. Money market funds that Lawrence likes include the Federated Hermes Prime Cash Obligations Fund (PCOXX) and the Fidelity Tax-Exempt Money Market Fund Premium Class (FZEXX). Unless they're tax exempt, money market fund income is subject to federal, state and local taxes.

☆ 4 key money moves in an uncertain economy, according to financial advisors
▼ + stars: | 2023-01-17 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

In some cases, it used to make financial sense to tap cheap credit for a larger purchase, rather than withdrawing money from a savings or investment account. If you currently have credit card debt, "grab one of the zero-percent or low-rate balance transfer offers," McBride advised. Put your cash to workOnce you've paid down debt, Peters recommends setting some money aside in separate savings account for emergency expenses. "Online savings accounts can be a way to earn money in times when other investments may not be returning well," he said. "It's not a huge return but you are not going to lose your money," he said.

☆ How High Will Jumbo CD Rates Go in 2023?
▼ + stars: | 2022-12-24 | by ( ) www.wsj.com time to read: +6 min

In other words, while today’s jumbo rates are certainly attractive, you don’t need to be a wealthy investor to get the best CD rates available. So whether you’re looking for a jumbo CD or didn’t think you could afford one, here’s what you need to know about jumbo CDs, where rates could go in 2023 and why regular CDs are the way to go. With a regular CD, early withdrawal penalties can range from zero with a no-penalty CD to six months’ interest, with higher penalties for multiyear CD terms. CD rates tend to follow Federal Reserve moves, which explains why CD rates ticked upward after each Fed rate hike in 2022. CD buying strategiesTo find the best CD rates, you’ll want to look beyond jumbos and rate shop regular CDs.

☆ The 60/40 portfolio has been suffering all year, but there are opportunities for long-term investors
▼ + stars: | 2022-10-19 | by ( Michelle Fox | ) www.cnbc.com time to read: +5 min

The 60/40 strategy, known as a balanced portfolio, has been hit by rising bond yields — which means falling fixed income prices, as well as a sinking stock market. "The future is brighter for the 60/40," said Omar Aguilar, CEO and chief investment officer of Schwab Asset Management. "The correlation will come back to the normal levels, or the historical levels that you normally have between equities and fixed income," Aguilar said. Schwab's Aguilar advises against chasing yields in fixed income, but instead maintaining a balanced approach between credit and duration. In fixed income, the firm currently has a bond duration of four years, down from its previous seven-year duration.

CNBC's Jim Cramer, on the other hand, bought 2-year Treasury notes for his personal portfolio. With short-term notes, investors can get the high yield without a long-term commitment. A direct purchase from the government You can buy Treasurys directly from the U.S. government through its website, TreasuryDirect.gov . Exposure through a bond fund You can also get exposure to the bond market through mutual funds and exchange-traded funds. For instance, a short-term Treasury bond fund could have issues with maturities ranging between one and three years.

The spike in short-term Treasury yields may have some investors thinking about adding the notes to their portfolio. CNBC's Jim Cramer, on the other hand, bought 2-year Treasury notes this week for his personal portfolio. Buying through a brokerage You can also purchase Treasury notes on the secondary market, going through a brokerage firm. For instance, a short-term Treasury bond fund could have issues with maturities ranging between one and three years. See below for four short-term Treasury funds.

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