I retired 5 years ago with a 5 year bond and CD ladder yielding a marvelous 5% weighted average. Those were the days!!
As the global economy has sputtered, I have gradually lengthened my ladder to 10 years to eke out a 3% average in CDs and various individual bonds. If rates shoot up fast, I'll be slow to catch up my weighted average, only renewing 10% of my portfolio each year at the increasing rates. Maybe I should go to 20 years and grab another myself another point of average yield. I can live on the 3% as long as inflation doesn't take off. If it does I'll have to revert to the "rice and beans" plan!
Has anybody else made these same moves? Any advice about where to go from here? Miserable uncertainty loves company!
Sent from my iPhone using Early Retirement Forum
As the global economy has sputtered, I have gradually lengthened my ladder to 10 years to eke out a 3% average in CDs and various individual bonds. If rates shoot up fast, I'll be slow to catch up my weighted average, only renewing 10% of my portfolio each year at the increasing rates. Maybe I should go to 20 years and grab another myself another point of average yield. I can live on the 3% as long as inflation doesn't take off. If it does I'll have to revert to the "rice and beans" plan!
Has anybody else made these same moves? Any advice about where to go from here? Miserable uncertainty loves company!
Sent from my iPhone using Early Retirement Forum