Money For the Rest of Us

How To Lock In Higher Yields In Case Interest Rates Fall

01.24.2024 - By J. David SteinPlay

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With cash yields expected to fall, here's how you can keep your portfolio income elevated by purchasing longer-term individual bonds and bullet ETFs

Topics covered include:How future short-term interest rates, inflation expectations, and term premiums impact long-term interest ratesHow each of those rate drivers contributed to the close to 1% drop in interest rates in the past three monthsHow yield to maturity is our guide to locking in a fixed return using individual bonds or bullet ETFsHow bullet ETFs work and what are some examplesWhat are callable bonds and how to analyze themHow to analyze municipal bondsWhy we might want to lock in higher yields today

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Show Notes

Term Premium on a 10 Year Zero Coupon Bond—FRED Economic Data

Investments Mentioned

Vanguard Total Bond Market ETF (BND)

Invesco BulletShares 2030 Corporate Bond ETF (BCSU)

iShares iBonds Dec 2026 Term Trust ETF (IBTG)

Invesco BulletShares 2031 High Yield Corporate Bond ETF (BSJV)

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