Stocks Dropped on the Fed, and a 72-Year-Old Fled to Treasuries for Safety. The

Treasury interest counts toward provisional income, potentially pushing up to 85% of a retiree's Social Security benefit into taxable territory above $34,000.

A $200,000 shift into a 4.5% Treasury generates $9,000 in interest that can make the effective after-tax yield far lower than advertised.

Holding Treasuries inside a Roth IRA shields the interest from provisional income calculations; the same bond in a taxable brokerage triggers the drag annually.

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She is 72, retired, and watched her brokerage statement shrink after the June 17, 2026 Federal Reserve meeting. Fed Chair Warsh held the federal funds rate at 3.5% to 3.75% and signaled possible hikes ahead. Stocks fell. Treasury yields, already near multi-year highs, looked like a gift: roughly 4.2% on the 2-year, 4.5% on the 10-year, and 4.9% on the 30-year. So she moved a chunk of her portfolio out of equities and into Treasuries.

Her reasoning is familiar. At her

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/stocks-dropped-fed-72-old-100329120.html)