Posts  / #POST-219580
REDDIT

Why don’t rich people invest in bonds after a certain threshold?

F
Feb 11, 2026 · 17:12

If you have a nest egg of 20m USD, and invest it all into 30Y Treasury Bond with a yield of 4.7% wouldn’t that return 900k+ every year essentially guaranteed? I’ve been spending my 20s aggressively investing and saving towards a nest egg number like that with the thought of essentially retiring after.

Now I completely understand the avg annualized return on the broad market is about 9-10%. But of course that means risk of downside. Meanwhile my bond is guaranteed for the next 30 years (granted the US Government doesn’t default which i also understand is a greater risk now more than ever)

Is there a serious fatal flaw that I’m misunderstanding from this plan?