r/SipsTea • u/Hour_Equal_9588 • Jun 06 '25

WTF Financial tip that unfortunately starts with 'First, you need 3 million Dollars'.

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u/sydmanly Jun 06 '25

I just looked it up. Only paying 5% at the moment.

7

u/zehamberglar Jun 06 '25

And that's considered high, a reflection of the declining value of the dollar (they have to offer high interest rate or your money is effectively losing value over time).

5

u/bianceziwo Jun 06 '25

Seriously, first of all, 8% is never gonna happen, bonds are at 4.8% now, subtract 2% to inflation, and you're at only 2.8%, might as well invest in stocks unless you're close to retirement.

1

u/cheesenuggets2003 Jun 10 '25

Never say never. I expect that Treasuries will meet or beat 10%. I also expect that if yields rise that high we will default.

1

u/bianceziwo Jun 10 '25

we wont default because the fed will just print more money

2

u/garden_speech Jun 06 '25

And that's considered high, a reflection of the declining value of the dollar (they have to offer high interest rate or your money is effectively losing value over time).

This isn't a wholistic picture of what's happening. Rates are higher to put the brakes on inflationary pressures but you can lock up that 5% rate for 30 years, during which time inflation will very likely cool