Thank you for following up on my Socratic methodGreat question. No one really knows is my answer.How do you know they will improve?Is it just me or are YTMs way down today?
I have completed purchases and funded 10 years out of 15 so far.
Would it make sense to put the money into something like SGOV and wait for YTMs to improve a bit?
Seeking consensus from a forum or some group of "experts" doesn't help. I mean, it doesn't help other than helping you feel better about your decision. You won't know if it actually "made sense" until after the fact, and that might be weeks or months down the road.
The way out of the "should I buy or wait" dilemma is to ask yourself if the current YTM is good enough for your ladder needs. This could mean you develop a complicated mathematical model with various inputs, including current YTM, and make your decision based on that. Or -- what I have done -- is ask if 1.5 or 1.6 or 1.X real return something I can live with?
Statistics: Posted by RyeBourbon — Mon Sep 16, 2024 10:46 am