Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Bogle on Bond Expenses [speech]
Old 05-18-2007, 03:38 PM   #1
Full time employment: Posting here.
 
Join Date: Oct 2003
Posts: 961
Bogle on Bond Expenses [speech]

I didn't see this one posted before:

Stewardship vs. SalesmanshipóBond Mutual Funds Gone Awry

- Alec
__________________

__________________
ats5g is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-28-2007, 11:28 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,884
Thanks for the link. We do not seem to get a lot of good papers on bonds and this is a beauty. I like Mr. Bogle's use of the term "relentless rules of humble arithmetic" here. It demonstrates that bond funds do not need to have a large ER to be successful, and lead the pack as the Vanguard funds do.
__________________

__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Old 05-28-2007, 11:28 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,884
Thanks for the link. We do not seem to get a lot of good papers on bonds and this is a beauty. I like Mr. Bogle's use of the term "relentless rules of humble arithmetic" here. It demonstrates that bond funds do not need to have a large ER to be successful, and lead the pack as the Vanguard funds do.
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Old 05-28-2007, 03:06 PM   #4
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
I have said similar things before but we have some stalwart bond fund defenders on the forum. This will probably resurrect the troops.

I can't see a reason to pay any fees for buying or holding fixed income. It's very easy to buy a laddered portfolio of CDs, government or non-government bonds with minimal or no fees. They can then be held until maturity or sold at the current market rates in the event of unexpected need. The nice thing about holding to maturity is that the principal is recovered except for the credit risk of the non-government backed bonds.

I personally like the short maturity yield of CDs which are readily available around 5.25%. That's not great but it beats US 30 year bonds. By diversifying with brokered CDs, you can avoid the FDIC limit.
__________________
2B is offline   Reply With Quote
Old 05-28-2007, 08:50 PM   #5
Thinks s/he gets paid by the post
saluki9's Avatar
 
Join Date: Feb 2005
Posts: 2,032
Quote:
Originally Posted by 2B View Post
I have said similar things before but we have some stalwart bond fund defenders on the forum. This will probably resurrect the troops.

I can't see a reason to pay any fees for buying or holding fixed income. It's very easy to buy a laddered portfolio of CDs, government or non-government bonds with minimal or no fees. They can then be held until maturity or sold at the current market rates in the event of unexpected need. The nice thing about holding to maturity is that the principal is recovered except for the credit risk of the non-government backed bonds.

I personally like the short maturity yield of CDs which are readily available around 5.25%. That's not great but it beats US 30 year bonds. By diversifying with brokered CDs, you can avoid the FDIC limit.
Well there are many reasons people would have to pay to hold fixed income assets

1. Just because you're buying individual bonds doesn't mean you're getting them for free. The bond market is still not a kind place for small investors.

2. Many people have most of their assets in 401(k) plans and IRAs. It is almost always impossible to buy individual bonds in 401(k)s.

3. In almost all cases these plans are the most tax efficient places to hold fixed income.

4. In some FI classes such as high yield, convertibles, and foriegn bonds it is not a good idea for the vast majority of folks to buy individual bonds.
__________________
saluki9 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Expenses Vincenzo FIRE and Money 11 05-13-2007 08:48 PM
Bond holdings - thoughts on switching funds? Lusitan FIRE and Money 6 04-04-2007 12:39 PM
Expenses KM FIRE and Money 6 02-07-2007 09:27 AM
Help with the bond side of things Roger_R FIRE and Money 16 07-06-2004 04:58 PM
Building a short-term bond portfolio for 20+ years Nords FIRE and Money 3 02-12-2004 08:54 PM

 

 
All times are GMT -6. The time now is 03:43 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.