Treasury bonds: Still safe for investors
Edward Jones - Chad Choate, AAMS
For more information about the author, click to view their website: Edward Jones
Jan 25, 2024
Florida - Sarasota, Bradenton & Charlotte Counties
Email US
Click to Email Us
You
may have read reports about an impending “debt crisis” in the U.S. Should you
be worried about investing in Treasury securities?
Part
of the concern over debt has been driven by the cost of government borrowing,
which has risen because of higher interest rates. But it’s worth noting that while
interest expenses have risen to nearly 2% of gross domestic product (GDP), this
measure had exceeded 3% in the early 1990s. So, while the upward trend of federal
debt could prove problematic down the road, the claims of a current crisis may
be overblown. And Treasury securities are still considered among the safest
investments in the world, as they are secured by the full faith and credit —
that is, the ability to borrow and tax — of the United States.
In any
case, if you haven’t invested in Treasury securities, you’ll want to know the basics.
First of all, when you purchase a Treasury security, you’re lending money to
the federal government for a specific period of time.
Here
are your purchase options:
• Treasury bill – Typically matures in
four, 13 or 26 weeks, although some have maturities of up to a year.
• Treasury
note – Matures between one and 10 years.
• Treasury
bond – Typically matures in 10 to 30 years.
When
you buy Treasury notes or bonds, you receive semiannual interest payments, but
when you purchase a Treasury bill — a T-bill — you generally buy it a discount,
and when the bill matures, you receive its face value. So, for instance, you
might pay $4,700 for a 13-week T-bill and get $5,000 back at the end of the
three months.
When
investing in Treasury securities, you’ll want to keep these features in mind:
• Price
fluctuation – While your interest payments will always remain the same, the
market value of your Treasury security can change. So, you might not get face
value for a Treasury bond if you sell it before it matures, particularly if
market interest rates are higher than the rate you’ve been receiving. Because
longer-term bonds have more payments left to make than shorter-term ones, they
are more sensitive to interest rate changes and market price fluctuations.
• Taxes
– Interest income from Treasury securities is subject to federal income tax but
exempt from state and local taxes.
In addition to the
traditional Treasury bonds, bills and notes, another option is available:
Treasury Inflation-Protected Securities (TIPS). Unlike other Treasury
securities, in which the principal is fixed, the principal of a TIPS can move
up or down, based on movements in the Consumer Price Index for Urban Consumers
(CPI-U). Once your TIPS matures, if the principal is higher than the original
amount, you’ll get the increased amount; if the principal is equal to or less
than the original amount, you’ll get the original amount. TIPS pay a fixed interest
rate semiannually until maturity, but because interest is paid on the adjusted
principal, the amount of your interest payments can vary. As with other
Treasury securities, you can hold a TIPS until maturity or sell it before it
matures.
Don’t let scary or gloomy
predictions discourage you from considering Treasuries — they remain a good
option as part of the fixed-income portion of your investment portfolio.
Chad Choate III, AAMS
828 3rd Avenue West
Bradenton,
FL 34205
941-462-2445
chad.chaote@edwardjones.com
This article was written
by Edward Jones for use by your local Edward Jones Financial Advisor.
Edward Jones, Member
SIPC
Other Articles You May Like
Alzheimers Disease: Understanding, Compassion, and Practical Support for Families
Supporting Families on the Alzheimers Journey: Understanding, Compassion, and Help from Caring TransitionsAlzheimers disease touches millions of lives around the world. When a loved one is diagnosed, it can feel overwhelming not just for the individual, but for their entire family. The journey is filled with uncertainty, emotional ups and downs, and practical challenges. At Caring Transitions Twin Cities Central, we understand these struggles and are here to offer guidance, compassion, and support every step of the way.What is Alzheimers Disease?Alzheimers is a progressive neurological disease that affects memory, thinking, and behavior. In the early stages, a person may experience forgetfulness or confusion. Over time, tasks that once seemed simple like managing a household or carrying on a conversation can become difficult. Each persons journey is unique, and so is the way the disease progresses.Early detection can help families access medical treatments and support services, but receiving a diagnosis is never easy. It often raises more questions than answers and thats where education and community support play a critical role.Caring for a Loved One with AlzheimersCaring for someone with Alzheimers involves much more than meeting physical needs. It requires patience, empathy, and a deep understanding of the person behind the diagnosis.Simple adjustments can make a big difference: Create daily routines to offer a sense of stability. Communicate clearly and calmly. Modify the home environment to ensure safety and comfort. As the disease progresses, changes in behavior such as agitation, wandering, or withdrawal can be difficult for families. Its important to remember that these behaviors are symptoms of the disease, not a reflection of your loved ones feelings or character.The Emotional Impact on FamiliesAlzheimers doesnt just affect the person diagnosed; it impacts the entire family. Caregivers often experience a range of emotions sadness, frustration, guilt, and even grief for the person their loved one used to be. Its crucial for caregivers to acknowledge these feelings and seek support for themselves.Support groups, counseling, and respite care can provide much-needed relief and a sense of community. No one should have to navigate this journey alone.How Caring Transitions Can HelpAt Caring Transitions Twin Cities Central, we specialize in helping families manage some of the most overwhelming aspects of caring for a loved one with Alzheimers. When its time to downsize, declutter, or relocate, these tasks can feel emotionally and physically exhausting. Our team provides compassionate, professional assistance handling everything with care, patience, and respect.Whether youre preparing a safer living space, transitioning to a memory care community, or organizing a family estate, were here to help lighten the load.You Are Not AloneAbove all, remember: you are not alone. Countless resources and communities are ready to support you, including national organizations like the Alzheimers Association and Alzheimers Foundation of America, as well as local groups and online forums. And when you need hands-on help with lifes practical transitions, Caring Transitions Twin Cities Central is just a phone call away. Were honored to walk this path with you with understanding, compassion, and care. We can be reached at 651-504-4040 or visit our website at www.caringtransitionstccentral.com
Technology in Home Health: How Smart Devices Help Seniors Thrive
As we age, our needs evolveand so does the technology that supports us. Todays smart devices are transforming how seniors receive care, manage their health, and remain independent in the comfort of their own homes. Whether it's a voice-activated assistant, a smart medication dispenser, or a fall detection system, smart devices for seniors are reshaping what aging in place truly means.In this blog, well explore how technology is driving innovation in home health care, the benefits of smart devices for seniors, and how caregivers and families can use these tools to enhance the quality of life for their loved ones.The Rise of Smart Devices in Senior CareThe integration of smart technology into daily life isnt just for tech-savvy millennials. Seniors are increasingly embracing tools like Amazon Alexa, wearable health monitors, and GPS-enabled devices. These technologies are designed to be user-friendly and accessible, providing crucial support to those managing chronic conditions or needing daily assistance.For home health providers, incorporating smart devices into care plans offers real-time data and improved communication, allowing for better decision-making and timely interventions.How Smart Devices Support IndependenceOne of the primary goals of senior care is to help aging adults remain as independent as possible. Smart home technology helps achieve this by automating tasks and providing safety nets that reduce reliance on caregivers.For example, smart thermostats can maintain comfortable indoor temperatures, voice assistants can remind users to take medications, and smart lights can reduce fall risk by turning on automatically when movement is detected.Monitoring and Emergency SupportSmart medical alert systems go beyond traditional push-button pendants. Todays wearable devices can automatically detect falls and send alerts to emergency contacts or health providers. Some devices also monitor vital signs and track activity levels, providing a holistic picture of a seniors well-being.These tools are especially valuable for families who live far away and want peace of mind that their loved ones are safe.Medication Management Made EasyManaging multiple medications is a daily challenge for many seniors. Fortunately, smart pill dispensers can be programmed to release medications at scheduled times, accompanied by audible or visual reminders. This reduces missed doses and improves adherence to prescribed treatmentsan essential aspect of effective home health care.Social Connection and Mental HealthIsolation is a serious concern among older adults, but smart devices offer ways to stay socially connected. Tablets and voice-activated assistants make video calls, reminders, and news updates easier to access. With just a simple command, seniors can call family members, listen to music, or get the latest weather reportkeeping them mentally stimulated and emotionally connected.Common Mistakes to AvoidWhile smart devices for seniors offer many benefits, its important to select technology that suits the users comfort level. Avoid overly complicated setups or devices that require constant updates or troubleshooting. Always look for options with simplified interfaces and strong customer support.Additionally, consider privacy and data protection. Make sure devices are secure, and educate users and caregivers on safe usage practices.Tips for Successful ImplementationStart small and gradually introduce new devices based on individual needs. Provide hands-on demonstrations and simple instruction manuals, and involve caregivers or family members in setup and troubleshooting.Choose devices that integrate with each other, so managing them is streamlined. For example, pairing a smart lock system with a camera doorbell can provide security while making home access easier for healthcare professionals or family caregivers.Smart Technology Is Empowering SeniorsSmart devices for seniors arent just gadgetstheyre tools for empowerment. By improving safety, promoting independence, and keeping seniors connected to their care networks, technology is redefining what aging at home looks like. Whether youre a caregiver, senior, or healthcare provider, understanding and leveraging these tools can lead to better outcomes and peace of mind.If youre looking to learn more about how to incorporate technology into senior careor want to explore trusted providers in your areaSeniors Blue Book is here to help. Contact us today at hello@seniorsbluebook.com or call 800-201-9989 to get a free marketing consultation and a full assessment, including practical tips you can implement right away. Lets build a smarter, safer future for our seniorstogether.
The Mouth is the Gateway to the Bodyand the Brain, too
Oral health is about much more than a clean smile. For older adults, brushing and flossing can become difficult due to arthritis, memory loss, or physical limitations. When dental care is missed, harmful bacteria build up. And they dont stay in the mouth.Research has found links between gum disease and a range of serious health issues: heart disease, pneumonia, diabetes complications, and more recently, dementia. In studies, bacteria associated with gum infections have even been found in the brains of people with Alzheimers disease, suggesting a role in inflammation and cognitive decline.The good (but not-so-new) news? Professional cleanings and oral screenings help reduce bacteria, spot issues early, and protect overall health. And theyre not just for those with medical conditionseven healthy individuals benefit from reaching the areas daily brushing and flossing miss.Dental care is healthcare. For aging adults, it plays a vital role in maintaining comfort, dignity, and quality of life.Mouth health is whole-body healthespecially as we age. Editors Note: This article was submitted by Jacob H. Nguyen, RDH. Jacob is a Direct Access Dental Hygienist and Founder of Dental Carvan. For more information he may be reached at 303-210-0999.
Local Services By This Author
Edward Jones - Chad Choate, AAMS
Retirement Planning 828 3rd Ave. W., Bradenton, Florida, 34205Experience and BackgroundI am a financial advisor in Bradenton, FL, and began my career with Edward Jones in 2017. As a financial advisor, I want to find out what's important to you and help you build personalized strategies to achieve your goals.As a lifelong Manatee County resident, I graduated from the University of South Florida and was a teacher in Manatee County before joining Edward Jones. My driving force is to change people's lives in a positive way, and what better place than my home to do that.Whether you're planning for retirement, saving for college for children or grandchildren, or just trying to protect the financial future of the ones you care for the most, we can work together to develop specific strategies to help you achieve your goals. We will also monitor your progress to help make sure you stay on track or determine if any adjustments need to be made. Throughout it all, we're dedicated to providing you with top-notch client service.But we're not alone. Thousands of people and advanced technology support our office so that we can help ensure you receive the most current and comprehensive guidance. In addition, we welcome the opportunity to work with your attorney, accountant and other trusted professionals to deliver a comprehensive strategy that leverages everyone's expertise. Working together, we can help you develop a complete, tailored strategy to help you achieve your financial goals.I currently volunteer with the Manatee Hurricane football Broadcast and Booster Club, serve on my church's trustees council and have previously served as a leader in Young Life. I am a member of the Manatee Chamber of Commerce and an alumnus of their Leadership Manatee program.I have been married to my childhood sweetheart, Ashley, for 15 years and we have a son, Wesley, and daughter, Camryn. We enjoy watching our children play their sports and traveling as a family.
Edward Jones - Chad Choate, AAMS
Financial Services 828 3rd Ave. W., Bradenton, Florida, 34205Hello, I'm Chad Choate a dedicated financial advisor in Bradenton, FL, I began my career with Edward Jones in 2017. As a financial advisor, I want to find out what's important to you and help you build personalized strategies to achieve your goals. As a lifelong Manatee County resident, I graduated from the University of South Florida and was a teacher in Manatee County before joining Edward Jones. My driving force is to change people's lives in a positive way, and what better place than my home to do that. Whether you're planning for retirement, saving for college for children or grandchildren or just trying to protect the financial future of the ones you care for the most, we can work together to develop specific strategies to help you achieve your goals. We will also monitor your progress to help make sure you stay on track or determine if any adjustments need to be made. Throughout it all, we're dedicated to providing you with top-notch client service. But we're not alone. Thousands of people and advanced technology support from our office can help ensure you receive the most current and comprehensive guidance. In addition, we welcome the opportunity to work with your attorney, accountant and other trusted professionals to deliver a comprehensive strategy that leverages everyone's expertise. Working together, we can help you develop a complete, tailored strategy to help you achieve your financial goals. I currently volunteer with the Manatee Hurricane football Broadcast and Booster Club, serve on my church's trustees council and have previously served as a leader in Young Life. I am a member of the Manatee Chamber of Commerce and an alumnus of their Leadership Manatee program. I have been married to my childhood sweetheart, Ashley, for 15 years and we have a son, Wesley, and daughter, Camryn. We enjoy watching our children play their sports and traveling as a family.
Edward Jones - Chad Choate, AAMS
Long Term Care Insurance 828 3rd Ave. W., Bradenton, Florida, 34205Hello, I'm Chad Choate a dedicated financial advisor in Bradenton, FL, I began my career with Edward Jones in 2017. As a financial advisor, I want to find out what's important to you and help you build personalized strategies to achieve your goals. As a lifelong Manatee County resident, I graduated from the University of South Florida and was a teacher in Manatee County before joining Edward Jones. My driving force is to change people's lives in a positive way, and what better place than my home to do that. Whether you're planning for retirement, saving for college for children or grandchildren or just trying to protect the financial future of the ones you care for the most, we can work together to develop specific strategies to help you achieve your goals. We will also monitor your progress to help make sure you stay on track or determine if any adjustments need to be made. Throughout it all, we're dedicated to providing you with top-notch client service. But we're not alone. Thousands of people and advanced technology support from our office can help ensure you receive the most current and comprehensive guidance. In addition, we welcome the opportunity to work with your attorney, accountant and other trusted professionals to deliver a comprehensive strategy that leverages everyone's expertise. Working together, we can help you develop a complete, tailored strategy to help you achieve your financial goals. I currently volunteer with the Manatee Hurricane football Broadcast and Booster Club, serve on my church's trustees council and have previously served as a leader in Young Life. I am a member of the Manatee Chamber of Commerce and an alumnus of their Leadership Manatee program. I have been married to my childhood sweetheart, Ashley, for 15 years and we have a son, Wesley, and daughter, Camryn. We enjoy watching our children play their sports and traveling as a family.