GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
it’s possible for you to read more about oureditorial guidelinesand our products and servicesreview methodology.
In a Septemberepisode, she broke down how Treasury bonds work and how she wouldinvest in them today.
What Are Treasury Bonds?
Treasury bonds are conservative options compared to investments like stocks, cryptocurrency, commodities and real estate.
Treasury bonds are loans you give to the U.S. government for a fixed period of time.
In return, you receive a fixed amount of interest every six months until the bond matures.
you could purchase Treasury bonds that last 20 or 30 years.
The rates of these new bonds will change depending on factors like government policies and economic conditions.
Orman explained that these rate changes affect bonds differently depending on their maturity.
A short-term Treasury note will also become more or less valuable with a change in interest rates.
However, it will mature more quickly, confining thegains or lossesto a shorter time frame.
Those who followed her initial advice would be up considerably now.
However, her advice has since changed with the market.
Now, Orman suggests investing in three different Treasuries, using a strategy called a Treasury ladder.
A Treasury ladder involves buyingmultiple Treasury bonds, notes or billswith varied terms.
This creates a spaced-out investment that protects you from risk.
Orman specifically recommended buying three-, five- and seven-year Treasury notes.
More From GOBankingRates
Share This Article:
