Anyone locking is some good rates for long term bonds?

[ggbman]

As interest rates have been on the rise lately, has anyone been socking away money into long term bonds that are paying 8% interest. Having that kind of return with no risk is a nice piece of mind, especially for young players who want to start something like a ROTH IRA. The big downside is missing other investmant opputunitues, especially because if you put it in an IRA, you cant touch it until you're 60.

[Recliner]

You don't want to be sticking money in bonds when intrest rates are rising because bonds are going to lose value as soon as rates go up. I took a look at http://bonds.yahoo.com/rates.html and while it doesn't display BBB or BB ratings and I don't want to spend lots of time looking when I don't think you can find an 8% yield on an investment grade bond. Also, you talked about not having any risk is wrong unless your talking about T-Bills everything else does carry default risk, which is shown in a bond's rating.

[Ray Zee]

when interest rates are rising. and you dont know exactly how much or when, a money market fund tends to beat all other investments. bonds do poorly and stocks as well. although the stocks may have a lag which makes it look like they arent going to be effected much, and then whammy.

[lu_hawk]

no such thing as returns with no risk. and right now there is especially no such thing as a 8% yield with no risk. 8% yield gets you into junk bond territory right now.

[natedogg]

Being in an IRA doesn't matter in terms of investment opportunity. You face a penalty for taking it out to spend, but you can re-allocate the investment to whatever you want.

natedogg

[ggbman]

[ QUOTE ]
Being in an IRA doesn't matter in terms of investment opportunity. You face a penalty for taking it out to spend, but you can re-allocate the investment to whatever you want.

natedogg

[/ QUOTE ]

Yes i know, i only meant that while it's tempting to being to save money in a Roth IRA to generate a tax free retirement income, the downside is this would not allow for early reitrement because the money can't be used.

[goodguy_1]

for the short-term until I figure out where I'm going to buy a house..I bought some 2-year Treasury notes yielding 3.80% about 2 weeks ago ..yield is down to 3.63% this afternoon.I also own some 5.73% Federal Home LoanBank Bonds due in 2013..they are callable thu so they never trade much above par.But I get semi-annual payments on that 02/20 and 08/20 of each year.For 8% you are going to have to go down in quality.If you want 8% long-term for an IRA just invest in low-fee stock index funds you should get a return of ~7-8% per anum.I also bought some SPY last month around this level(117.60)I also left 4 GTC SPY buy orders laddered down 2.50% from one another.If I get hit on all of them.I own about 1000 SPY's..next order down is @114.75--looks like that ones gonna get hit soon the way this market is acting [img]/images/graemlins/confused.gif[/img]I also max out my monthly contibutions to my Vanguard Roth IRA-VTSMX Fund .I actually dont mind if the market goes lower for my IRA it'll bring me cost basis down for an investment I'm going to hold for 20-30 years...