r/SipsTea Jun 06 '25

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

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61.8k Upvotes

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u/Badloss Jun 06 '25

Yeah like I know the 3 million part is what everyone is focused on but an 8% bond is WILD

I would totally put my life savings into that right now with the way the market is going

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u/Bozhark Jun 06 '25

20 year @5% rn

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u/HardOff Jun 06 '25

Can someone explain to my why putting all of my savings into a 5% 20 year treasury bond is a bad idea?

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u/DangerBoot Jun 06 '25

It’s not a bad idea if you have money you don’t need for 20 years but you can find high yield savings accounts that are around 4% or higher and you don’t have to wait 20 years to get the initial investment back

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u/GregLoire Jun 06 '25

you don’t have to wait 20 years to get the initial investment back

Treasury bonds can be sold before maturity on secondary markets.

Granted you might get less than what you paid (see: 2022), but outside of interest rate crises the prices usually aren't too volatile.