Re: Windfall Advice
Posted: Wed Jun 14, 2017 9:03 pm
Just to clarify: you're talking about the coupon, right?sophie wrote:buy the lowest interest-rate option you can find, e.g. pick a 2.5% bond over a 3.25%.
Permanent Portfolio Forum
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https://www.gyroscopicinvesting.com/forum/viewtopic.php?t=9081
Just to clarify: you're talking about the coupon, right?sophie wrote:buy the lowest interest-rate option you can find, e.g. pick a 2.5% bond over a 3.25%.
It's much simpler than that. You just want the lowest coupon rate for the maturity you are interested in.mukramesh wrote:Ah thank you, I realized that maturity affects duration but I forgot the yield.
Is it true that we always want the highest duration bond (i.e. lowest yield for the longest maturity)? And is this also true in retirement accounts?
Took a while for the details to come in, but much of the money *is* in tax deferred accounts. A portion is in physical bullion (we're researching a safe now). Some is in the form of a refund from an annuity (why an annuity is being refunded is something I don't yet fully understand).stuper1 wrote:This is a very important question. If the money is coming from a tax-deferred retirement account, you may be able to roll some or all of it into a new tax-deferred account and let it continue to grow without paying taxes.