Comments on: Steady and Consistency Can Win the Race

By: Blogging Banks

Blogging Banks — Sat, 27 Feb 2010 21:28:13 +0000

Well, theoretically one coudl have purchased U.S. Treasury Zero Coupon Bonds in 1990 when they were yielding whatever rate, and it would have been compounded at 8% annually for you.
Right now 30 year treasuries yield 4.50% to 4.75% for zero-coupon treasury bonds. I would say that 4.5% is a pretty decent return. While everyone has been worrying about inflation/deflation etc, bond investors keep receiving their interest coupons every 6 months. I try to have at least 25% of my networth in long-term US treasuries.

By: kashif

kashif — Wed, 17 Feb 2010 10:02:29 +0000

Very good and helpful for me and I will tell him to others thanks for sharing.

By: Adam@RabbitFunds

Adam@RabbitFunds — Wed, 17 Feb 2010 04:14:25 +0000

Great article. I’m usually an aggressive investor, happy to take the risk of the market. But it doesn’t always make sense. There is a certain reality to “good enough” as you pointed out so well in your article. Especially when good enough is safer.

By: Daddy Paul

Daddy Paul — Mon, 15 Feb 2010 03:52:36 +0000

You really make a good case here for asset allocation and rebalancing.

By: CD Rates Blog

CD Rates Blog — Thu, 11 Feb 2010 19:55:48 +0000

Originally, I was going to put a rate and even an example, but then realized I was focusing on what I do and how I feel too much.

However, 6% was the number I was thinking. It seems that given almost any time frame an average rate of return of 6% would be good.

But, everyone might have their own number. The key is don’t be greedy, know your number, when it comes, load, shoot, and lock it in.

cd :O)

By: marci

marci — Thu, 11 Feb 2010 19:40:10 +0000

Personally – I’m happy with anything that does NOT loose money these days

By: marci

marci — Thu, 11 Feb 2010 19:39:31 +0000

Cool on the audio – they can read along with it themselves then also.

By: MoneyNing

MoneyNing — Thu, 11 Feb 2010 19:26:21 +0000

Ah yes. Books are always good, but the website actually has audio too, which may or may not fit your needs (for example, you might think that YOU reading the book to your children is part of the fun)

By: MoneyNing

MoneyNing — Thu, 11 Feb 2010 19:25:20 +0000

So what do you think the rate should be? 6%? 8%?

Personally, I’d be happy with 6%, assuming inflation is less than 3%.

By: CD Rates Blog

CD Rates Blog — Thu, 11 Feb 2010 17:52:17 +0000

So maybe part of the lesson is also not to be greedy, but don’t be foolish either. Locking in a 30-year treasury at this point, may not be a good investment.

A bigger question is what is a good rate of return? When you can answer that question and you find the rate, don’t be greedy. Lock it in and don’t look back.

cd :O)