From Michael Foster: Let’s say you want to lock in a passive retirement income of $80,000 per year. If you go with what most investors mistakenly see as the safest route, long-term US Treasuries, you’re going to need $3.3 million.
That’s because 10-year Treasuries are paying a wimpy 2.4% interest rate today.
Investors who buy Treasuries often shrug off numbers like that. “So what?” they say, adding that Treasuries are about as low-risk as you can get.