In this daily episode of the One of a Kind Financial Show, Certified Financial Planner Mike Milligan reviews the latest market movements—declines across the Dow, S&P, Nasdaq, and Russell 2000, alongside a spike in Treasury yields (5‑year yield breaking 5% for the first time since 2007 and 10‑year topping 5.12%). He attributes the yield jump to stronger inflation pressures, expectations of another Fed rate hike, and weak demand at a Treasury auction, while cautioning against oversimplified explanations such as a single sovereign fund’s stance. Milligan then introduces his "three doors" framework for how higher rates affect individuals: the borrowing door (more expensive loans for homes and businesses), the investment door (falling bond prices affecting bond‑fund holdings), and the savings door (higher yields but greater rate sensitivity for longer‑maturity bonds). He advises giving money a purpose before fixing a maturity date. The host reflects on recent market signals—historical instances where indices rose despite many stocks hitting 52‑week lows, and a “check‑engine” warning from rising financing costs—encouraging listeners to run a diagnostic of their financial plan rather than chase headlines. He outlines three Q4‑review questions for retirement planning: upcoming cash needs, after‑tax spendable income, and whether a partial Roth conversion makes sense, emphasizing the tax treatment of Treasury interest in taxable versus tax‑advantaged accounts. Finally, Milligan promotes the One Oak Collective’s coaching services, a live event in Nashville, and teases a forthcoming episode on the top ten lessons from his 27‑year advising career as he celebrates his 50th birthday. The episode ends with standard disclosures and a bilingual sign‑off.
Chapters
Treasury yields, the stock market, and your retirement taxes. 3 different headlines, but one question: how much of your money will actually be available to live on when you need it? It's Thursday, September 24th. I'm Mike Milligan. This is the One of a Kind Financial Show Daily. You're here to learn and grow, so let's get to it.
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Here's today's thought. A higher yield is an opportunity. It is not a financial plan. Before you chase the number, understand what comes with it. Wednesday's closing scoreboard was interesting. The Dow finished down 0.68%. The S&P closed down 0.75%. The NASDAQ closed down 1.13%. The Russell 2000 finished down 1.77%, while the VIX registered 15.18. That was up at the close of the market yesterday. But the stock scoreboard was not the whole story. Bloomberg reported that the 5-year Treasury yield broke 5% for the first time since 2007, reaching 5.03% during Wednesday's session. The 10-year Treasury yield topped out at 5.12% in the afternoon. That is an intraday reading, not a closing quote. Why the jump? CNBC reported stronger inflation pressures, increased expectations for another Fed rate hike, maybe as soon as October, and weak demand at a 5-year Treasury auction. That is not the same as announcing another rate hike. Expectations can change before the Fed acts. And remember our sovereign fund conversation from earlier this week where Norway's sovereign fund investment manager gave a recommendation to reduce exposure to U.S. Treasuries? Don't force every bond market move into one explanation. If you're speaking to clients, this is not just the sovereign fund story. This is a story that is multifaceted. It's a combination of pressures, not evidence that one investor caused this entire move. Higher rates reach your life through 3 doors. The first door where higher rates reach you is the borrowing door. It's more expensive financing when rates are up, and this could squeeze homebuyers, business expansion for small businesses, and household budgets. Next door that higher rates influence is the investment door. When market interest rates rise, existing fixed-rate bond prices generally fall, including Treasury bonds. So if you own a bond mutual fund, especially an intermediate bond mutual fund, an intermediate duration or a long duration fund, your prices have been down because of these higher rates. And then there's the third investment or the third door that higher rates influence. That's the savings door. Higher yields can create income opportunities, but longer maturities generally carry greater sensitivity to changing rates. than comparable shorter bonds. See, government backing, especially on Treasuries, does not guarantee the price you receive if you sell before maturity. So safe needs a follow-up question. Safe from what risk? Those doors, the borrowing door, the investment door, and the saving door, are something that are being really impacted Right now because of the spike in rates. My recommendation, give your money a job before giving it a maturity date. Ask when you need the money, not just what it pays.
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We have had some interesting discussions this week on the One of a Kind Financial Show Daily. Earlier this week, we discussed how often in the past an index has increased where more companies had hit a 52-week low than a 52-week high. That's happened 3 times in history. This past Monday was one of them. December 1999 and in 1929 were the other 2 instances. Wednesday brought a different warning light. The market's check engine light came on. And that check engine light, when it was determined why it's there, higher and sharper rising financing costs. See, neither observation, the one about the market on Monday or Wednesday, gives us a crash calendar. Together, they are reason to examine your plan, run a diagnostic check, Instead of judging its health by one headline. See, oil remains on our watch list too. Wednesday's CNBC update showed prices reversing some earlier declines as uncertainty continues around what's going on in the Middle East. We're here daily, Monday through Friday, to give you our take. But remember, headlines are not a financial plan. A financial plan should be written based on why money is important to you, the values of your life, and the 5 pillars that you philosophically want to be able to put your opinion into so that you can make better decisions. See, we're not chasing returns here. We're building the one-of-a-kind financial plan.
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That brings me to the Retirement Handshake. In the introduction, I call Monday a tool, not a battlefield, and that matters on a day like this. You do not need somebody frightening you into a financial decision. You need somebody helping you understand the terms. Take Treasury interest in a taxable account. It is generally subject to federal income tax, and although exempt from state and local income taxes, it could be a useful tool. With a traditional IRA, taxable withdrawals generally become ordinary income. Qualified Roth IRA withdrawals are tax-free. The account holding the investment matters, not just the investment itself. So as we approach the 4th quarter, here are 3 questions I want written into your diagnostic review. What money will you need soon? What income will actually be spendable after taxes? And should this year's tax projection include a partial Roth conversion? The last question requires math, not a slogan. A conversation can create taxable income now, so it's not automatically the right move. See, the plan belongs on paper, not as vapor in your head. The assumptions deserve regular review.
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Today's one-of-a-kind financial show, Daily, has had a lot. We've talked about interest rates reaching levels they have not reached in almost 20 years. We talked about the market being down, down, down, down, but we're not talking about a crash, folks. We're talking about opportunity to review your financial plan and then assign your money a job. See, if you don't have that in your current advisor, or you're not talking about that with your clients, if you're a financial pro, You need to text the word ideas to the number 600-700. See, we at the One Oak Collective help coach financial professionals to have better conversations. We're having a live event in Nashville, Tennessee at the end of October with me and a certified financial therapist to be able to give you the right questions to ask your clients. And if you are a client, an individual investor, maybe a do-it-yourselfer, who is looking to get a tune-up or a diagnostic to see if you're running on all cylinders, text the word ideas to the number 600-700. Ask about a 4th quarter planning conversation. Let's connect your cash needs, your investment risk, and tax decisions instead of treating them as unrelated subjects. And tomorrow, something personal, the top 10 lessons I've learned in 27 years of advising people. Not 10 stock picks, not 10 predictions. The lessons about money, decisions, family, and the life all this planning is supposed to support. See, I turned 50 years old on Monday, September 28th, and before that birthday, I want to share what those years have taught me. Share this episode with someone comparing yields without comparing the consequences. Definitely share the show. with someone who needs the one-of-a-kind financial plan. This is Mike Milligan. I'm a Certified Financial Planning Professional. My mission is to educate, coach, plan— never miss a moment. Estoy aprendiendo. I'm learning. So are you by joining us. This program is for education purposes only, and it's not individualized investment recommendations or tax advice. Investing involves risk, and tax strategies should be reviewed with your financial and tax professional. I'm a certified financial planning professional. This does not constitute an engagement between us by listening to the show. I am also an investment advisory representative with Advisory Alpha LLC. Ideas by Mike, doing business as OneUp Financial, and Mike Milligan LLC, doing business as the OneUp Collective, are unaffiliated entities.
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