I'm glad you have at least one other reply, which is thoughtful and helpful.
When I mentioned the psychological aspects of investing, I meant to include your PERSONAL risk tolerance, and attitudes towards "watching" your investments. For example, while it is absolutely correct to consider products like BND, some TIAA investors benefit from the fact that TIAA Traditional cannot go down during periods of increasing interest rates. That "props up" their quarterly TIAA portfolio total numbers, reducing the (always unwise) temptation to sell into a down market.
I'm referring to the fact that on 7/18/24, the Ten Year Total Annualized Returns are:
TIAA Traditional RA: 3.93%
TIAA Traditional RC: 4.20%
BND: 1.34%
I don't think it's fair or sensible to use shorter-term numbers in judging long-term, Retirement investments. But BND in 2022 was -13.12% (that's a minus sign), while all TIAA Traditional accounts went up by at least their minimum interest rate, in the case of RA, usually +3.00%.
When I mentioned the psychological aspects of investing, I meant to include your PERSONAL risk tolerance, and attitudes towards "watching" your investments. For example, while it is absolutely correct to consider products like BND, some TIAA investors benefit from the fact that TIAA Traditional cannot go down during periods of increasing interest rates. That "props up" their quarterly TIAA portfolio total numbers, reducing the (always unwise) temptation to sell into a down market.
I'm referring to the fact that on 7/18/24, the Ten Year Total Annualized Returns are:
TIAA Traditional RA: 3.93%
TIAA Traditional RC: 4.20%
BND: 1.34%
I don't think it's fair or sensible to use shorter-term numbers in judging long-term, Retirement investments. But BND in 2022 was -13.12% (that's a minus sign), while all TIAA Traditional accounts went up by at least their minimum interest rate, in the case of RA, usually +3.00%.
Statistics: Posted by crefwatch — Thu Jul 18, 2024 7:13 am