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TIAA Traditional Annuity (Accumulation) Rates Rates down by 25 bps; released early. Restricted RC 5.00%, RA 4.75% Flexible RCP 4.25%, SRA 4.00%, IRA-101110+ 4.25% (TIAA Declaration Year 3/1 - 2/28)
We sold the bulk of our stable value fund before Powell announced September’s rate cut. It provided a respectable return and stability through 2022. Now it the tiime to move on elsewhere.
@Sven Would you mind telling where you moved to ? I'm thinking I'll keep rolling CD's & T-bills , while adding to some of the MF's I own. Looking a few years back & I can remember collecting 3% on a two year CD.
We moved to DODIX (core plus bond), BND (total bond index), and PYLD (multi-sector bond ETF) over 6 months. All of them are intermediate-term investment grade bond funds. Short term T bills have been falling below 5% yield since July this year and it is likely to reach 4% by year end. That is the reinvestment risk we face when FED cut rates. I think intermediate term is the sweet spot now for bonds as more rate cuts are coming through next year.
Comments
The main chart is 3m T-Bill and m-mkt track those with small lag.
The bottom frame shows 10y T-Note that SVs (TIAA Traditional, etc) tracks, also with some lag.
Scale is 10x the rate.
https://stockcharts.com/h-sc/ui?s=$IRX&p=D&b=5&g=0&id=p71662440404