Since 2020 members of the Ruedi Wealth team have been writing weekly investing and retirement planning columns for our local newspaper, The News-Gazette.
People generally purchase bonds to be the stabilizing asset in their portfolio. Unfortunately, this year bond investors have seen the value of their bonds or bond funds drop due to rising interest rates.
You may have heard me discuss the importance of “rising income investments” in the face of inflation in these columns and on our radio show. I am often using that phrase to describe stocks, but I am sure many people wonder why I call stocks rising income investments and why they are so important to address inflation.
The 10-year Treasury plays a unique role in the modern global financial system. As it is often considered the “risk free rate” – a return an investor can receive with practically no risk, it serves as a hurdle rate or benchmark of the cost of borrowing in general.
Series I Savings Bonds or “I-Bonds” for short, are designed to offer inflation protection to investors by providing a return that is made up of a fixed base rate, plus adjustments for inflation.
A 529 College Savings Plan is a special type of savings account that allows investments to grow tax-free and withdrawals to be made tax-free for qualified college or trade school expenses.
Though they have been around for over 20 years, equal weight index funds have gained extra attention this year. That is likely because S&P 500 equal-weight index funds have outperformed the standard S&P 500 index.