Floating Rate Bonds and Rising Interest Rates

A few weeks ago, we discussed interest rates, the 10-Year Treasury Notes and short-term bonds. We briefly mentioned floating rate bonds, a subject to which we return today. To review, in a rising interest rate environment, bonds will lose value. Why? Investors want...

Dear Graduate – Time is on Your Side

“Did I ever tell you the story about the magic of compounding?” That’s what you should ask your recent college graduate when you give her a Roth IRA contribution for graduation. It’s possible she won’t listen, but years from now she’ll be very grateful. The power of...

The 10-Year Treasury and What it Means to You

If you follow interest rates, you may have noticed that the 10-year Treasury note recently closed above 3.00% first time since December 31, 2013. So, what does this mean to you? Let’s start by noting that bond yields rise when bond prices drop. So, when the yield on...

Be Careful with Your Company’s Stock

Imagine that someone has worked for forty years for a company, and is retiring with a pension and shares of stock in that company. If you are among the majority of Americans who do not have a company pension, you might find this scenario rather appealing. But, if that...