Man, I don't know what I can say to get through to you. You apparently do realize that when you purchase a bond, or a CD, or Treasury note, it is guaranteed for the interest rate agreed upon, for the duration of the paper.
You said this..."your returns are not guaranteed past any point in time." Let's stop there. You realize they are guaranteed, and risk free.
Now, here's where I think you're losing me. You apparently think that I'm saying that having a bond, or CD portfolio as a a sole investment strategy for retirement is a good thing.
Nothing could be further from the truth. You are absolutely correct in saying that you can purchase any number of bonds today, next month, or maybe 4 years from now at a 6% rate of return. But that doesn't mean that 7 years from now you won't find it hard to purchase a bond with a 2.8% return. Therefore, using bonds, or CDs, as ones sole income is not any guarantee that you can always be able to buy them at a high rate of interest.
If that's what you're saying, I fully agree. However, I never at any time suggested such a thing. That's not what retired folks do. They have their pensions, or annuities, or various sources of income, along with Social Security, that get most folks through their retirement years. They also buy CDs, and bonds as part of their income for a guaranteed, no risk return. There are hundreds of thousands of retired people today, who may have, (as an example), a $38,000 income. They have grown accustom to subsidizing that income with perhaps $5,000 per year from CDs, Treasury Notes, or Bonds. These days because of the bad economy, bonds, and CDs, are only adding $1,200 to their already minimal income, which makes it very difficult for them. Period. That's all I was trying to say, as regards the economy.
I never mentioned, nor suggested anything regarding stock market investments. In that regard, I believe as you do. Are we clear now?
You said this..."your returns are not guaranteed past any point in time." Let's stop there. You realize they are guaranteed, and risk free.
Now, here's where I think you're losing me. You apparently think that I'm saying that having a bond, or CD portfolio as a a sole investment strategy for retirement is a good thing.
Nothing could be further from the truth. You are absolutely correct in saying that you can purchase any number of bonds today, next month, or maybe 4 years from now at a 6% rate of return. But that doesn't mean that 7 years from now you won't find it hard to purchase a bond with a 2.8% return. Therefore, using bonds, or CDs, as ones sole income is not any guarantee that you can always be able to buy them at a high rate of interest.
If that's what you're saying, I fully agree. However, I never at any time suggested such a thing. That's not what retired folks do. They have their pensions, or annuities, or various sources of income, along with Social Security, that get most folks through their retirement years. They also buy CDs, and bonds as part of their income for a guaranteed, no risk return. There are hundreds of thousands of retired people today, who may have, (as an example), a $38,000 income. They have grown accustom to subsidizing that income with perhaps $5,000 per year from CDs, Treasury Notes, or Bonds. These days because of the bad economy, bonds, and CDs, are only adding $1,200 to their already minimal income, which makes it very difficult for them. Period. That's all I was trying to say, as regards the economy.
I never mentioned, nor suggested anything regarding stock market investments. In that regard, I believe as you do. Are we clear now?