After retirement, if we're happy with our choices in the SSIP, is there any time limit or requirement for you to transfer out/roll over?
Just to emphasize, not so much happy, just inertia. Eventually I'll get to it. I've got mostly index funds in there.
I do notice the stable value/cash option is yielding only half of what money market funds outside are yielding. But its only 5% of my mix.
Thanks
We brought 6 month and 1 year Treasury bills and plan on holding them to maturity. I even printed out a 2024 calendar for Dad to mark the maturity dates. The thought was rates were probably going to keep increasing so we would keep buying on the short end of the Treasury curve. The situation has changed in the past few days.
When purchase treasuries, is it best to hold to maturity? I wonder what's the best way to figure out what duration to buy. The longer duration bonds have a higher yield but if interest rate (or terminal rate) continue to go up, would I sustain a loss because price can drop ---similar to what happened at SVB?
@2tgi+1lCcrRvX you're probably referencing secondary market.
Here is the most recent rates: https://treasurydirect.gov/auctions/announcements-data-results/
In the secondary market, the yield is down because investors are buying and moving away from banks (the higher you pay for the bond, the lower the yield).
Best to buy at Auction. There is a pro/con for buying from Treasury Direct.
Also there are high quality municipal airport bonds with AAA rating paying 5 - 5.5% for 10+ years.
2kee+1lCcrRvX I believe the fee you speak of with Fidelity is 19.95 for Rep Assisted purchases. I buy them nearly daily online for no fee, from what I can tell.
1 year Treasury Bill is now at 4.1%. It peaked at 5.24% just a couple of days ago
There is a lot on the web like here https://youtu.be/rFuiC-UNeMc
Yields have dropped some in the past week as lots of people are piling in. Also the forecasted terminal rate for Fed hikes has dropped in the past 3 days (terminal rate historically correlates to 2 year yield).
I invested $930k in Treasuries through Treasury Direct in the past month. My Dad also invested $500k with Treasury Direct over the same time period. We both expected rates would continue to rise to 6% but looks like we were wrong.
Fidelity allows you to buy newly issued Treasury Bills and Bonds. You can also buy Treasuries over the counter. I think Fidelity has a small $30 transaction fee
What is the best way to invest in treasuries and earned around 5%? Do you buy bond ETFs or individual bonds? Some has very long maturity. I rolled my 401k to Fidelity in Jan. Any suggestions will be greatly appreciated.
@2dod+1lCcrRvX Did mostly the same as you. Stay way from CDs that are callable! For now I’m sticking with treasuries for both IRA and emergency fund accounts. I took most of $ out of Ford Interest Advantage as it is NOT secured and not backed by Ford Motor.
Market has been down, economy has been down, Fed hikes are just beginning to hit. Pretty easy market to read in my opinion.
Lending standards are going to tighten. I worry even more for Ford in the next couple of years.
Using the rule of 55, we moved some pension $ to the 401k - just an estimate of what we will need to supplement income before 59.5. Everything else moved out to IRAs and investing in short term treasuries around 5%, laddering via a brokerage account. Now moving to 1-2 year CDs around 5.5% as businesses are trying to shore up their cash reserves, not exceeding 230k on any individual bank to stay under FDIC limits. Watching for longer term CDs and higher rates as other short-term treasuries mature until debt limit is addressed (hopefully by June). Sitting on sidelines for most equities for now, trying to cherry pick here and there. Hope this helps - nearly zero risk and learned the ideas from others on this board in 2022 which gave me confidence in my decision to retire. Haven't regretted it for a minute and look forward to a minimal tax burden that I have more control over vs about 33% when income is from employment, fica, etc.
No time limit, I moved 40+ % into short term Treasury Bills @ 5.1% last month. Since I have reached critical mass financially I have become more sensitive to downside risk
No time limit. If you are older than 55 but not quite 59.5 years old yet and you need to tap into the SSIP funds for any reason, there will be no penalty imposed by the IRS since your money is still held in a 401k held by the employer from which you retired. It’s called the IRS rule of 55. Just another reason to keep it in SSIP.
There is no time limit.
Overcome the inertia for the peace of mind you get from control and being treated like a valued customer.