short & mid-term vanguard treasury funds
My wife and I are both in our mid 80’s and have a significant amount (about 500K) of her IRA invested in short & mid-term vanguard treasury bond funds. she recently heard something about de-valuing the dollar and wonders what would happen the value of those funds and if there is anything safer outnthere for us.
Terry Says
There is very little that is safer, except maybe short term Treasury bills. Bonds lose market price when interest rates move higher. All bonds. Search my columns using “beware of bonds” for a more complete explanation.
6-month Tbills yield a bit less — but if rates rise, you can buy new higher-rate bills more quickly as they mature.
PS. The US Dollar IS being devalued regularly — at a rate of around 3% a year. In 25 years the spending power of one dollar will be cut in half at that rate. It’s called INFLATION!
