Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Bond Funds
Old 05-30-2008, 03:25 AM   #1
Recycles dryer sheets
 
Join Date: Jul 2007
Posts: 346
Bond Funds

I have a lot of my money in money market right now. I got scared off putting any more into stocks for the time being at least.

But I'm getting a little tired of the 2% I'm earning in money market and was thinking of putting it into some bond funds I wanted to see what people thought.

I know in the past there have been stretches where the bond funds earned next to nothing for a year or so because the share price fell so fast.

I'm just looking to get a little higher interest than 2% as safely as I can..and I'm open to all suggestions as well.

I was looking at Vanguard's GNMA and Long Term Treasury and Intermediate Treasury.

Thanks

Jim
__________________

__________________
summer2007 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 05-30-2008, 04:04 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,414
i wouldnt do long term treasurys at this point unless you were bullet proofing a portfolio with equal amounts of gold and stocks. long term treasuries and intermediate have been rising lately and buying them as just a speculation may leave you with capital loses down the road unless you hold them real long term


if you buy long term treasuries with gold and stocks then your not really speculating as to an outcome , your just covering all the bases, waiting for the trend of one of them to give them a run up and re-balance yearly. buying only 1 catagory is really betting on just one outcome
__________________

__________________
mathjak107 is offline   Reply With Quote
Old 05-30-2008, 06:47 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
What is your goal for this money? Will you need access to it any time soon, or is this long term capital that you won't need to tough for a long time?
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 05-30-2008, 07:15 AM   #4
Thinks s/he gets paid by the post
Rambler's Avatar
 
Join Date: Jul 2007
Posts: 2,250
I kinda think stocks are a bargain right now, but some LT bonds are not bad either, depending on your reason for investing in them. Ditto Brewer: Are you looking to build income into your portfolio or shelter in the storm? Do you know what your longer term target AA is and by when you want to achieve it? Now is probably a good time to get into both stocks and bonds, in your near to mid term AA, if you are cash/MM heavy.

Personally I'm buying into both stocks (targeting moderate divvie payers) and CA mid to LT munis (fed, state and AMT free bonds). I'm buying the bonds, not the funds (I read somewhere that active management of muni funds can trigger cap gains and losses, and cap gains tax, and my reason for buying bonds is income rather than cap gains, so I would rather buy and hold the bonds rather than invest in a fund).

R
__________________
Rambler is offline   Reply With Quote
Old 05-30-2008, 07:15 AM   #5
Thinks s/he gets paid by the post
jIMOh's Avatar
 
Join Date: Apr 2007
Location: Milford, OH
Posts: 2,085
My single bond fund is RPSIX. It is a fund of fund which concentrates on generating income. It yields 4.2%+ with moderate fluctuation of principal.

It invests in numerous bond funds and one dividend income fund (fund is 15% equity, 85% bonds). It has long term bonds, short term, money markets, REITs, domestic bonds, foreign bonds, government bonds and corporate bonds.
__________________
Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
jIMOh is offline   Reply With Quote
Old 06-02-2008, 12:41 AM   #6
Recycles dryer sheets
 
Join Date: Jul 2007
Posts: 346
Thanks everyone

The money I have that is in money market it just money that I have on hand in case anything comes up. It's not needed unless there is something going unexpectedly wrong.

I feel like I have too much just sitting around at 2% interest right now.

Jim
__________________
summer2007 is offline   Reply With Quote
Old 06-02-2008, 05:02 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
I would use bonds for long-term diversification. Set an allocation that is appropriate for your goal and rebalance periodically.

IMHO - I would keep emergency money in cash (mm or equivalent). At least 6 mos of expenses.

Recently, I had too much that had built up in cash... I deployed some of it to bonds to help meet my allocation target in bonds... but kept some in the MM... just in case.

Also, remember for the short-term... bond funds will shift around in value as forward looking interest rates are speculated upon by the market.
__________________
chinaco is offline   Reply With Quote
Old 06-02-2008, 10:26 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Lsbcal's Avatar
 
Join Date: May 2006
Location: west coast, hi there!
Posts: 5,696
Personally I like short term investment grade bonds now partly because they yield about 2% more then short term treasuries and historically this spread has been a good entry point. I'm adding to my holdings in Vanguard short term investment grade fund (VFSTX or admiral equivalent). You can find one recent discussion of this at: Bogleheads :: View topic - Clearing Up Misconceptions on ST Corporate Bonds
__________________
Lsbcal is online now   Reply With Quote
Old 10-26-2008, 06:29 AM   #9
Recycles dryer sheets
oma's Avatar
 
Join Date: Mar 2007
Location: Tampa/St Petersburg, FLA
Posts: 314
If I had only transferred stock mutual funds to bond or mmf several months ago.

Today transferred $12k from mmf to tax free bond fund (Vanguard short term tax free) - hoping to have found a bargain price during this correction/capitulation.
__________________
oma is offline   Reply With Quote
Old 10-26-2008, 01:05 PM   #10
Thinks s/he gets paid by the post
Gotadimple's Avatar
 
Join Date: Feb 2007
Posts: 1,764
Quote:
Originally Posted by summer2007 View Post
Thanks everyone

The money I have that is in money market it just money that I have on hand in case anything comes up. It's not needed unless there is something going unexpectedly wrong.

I feel like I have too much just sitting around at 2% interest right now.

Jim
Jim, if you want to increase your income without much risk, you may want to set up a CD ladder. 1 year CD's are yielding about 4%, 3 years about 4.5%, and 5 years over 5%. So depending on the $ amount you could easily take some of your MMF $ and create an interest yield of 4% or more.

-- Rita
__________________
Only got A dimple, would have preferred 2!
Gotadimple is offline   Reply With Quote
Old 10-26-2008, 08:41 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
freebird5825's Avatar
 
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,017
VWAHX and VNYTX (fully TE for NYers only) are 2 favorites. up until recently, the NAV was very stable. this too shall pass..
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
freebird5825 is offline   Reply With Quote
Old 10-27-2008, 05:19 AM   #12
Recycles dryer sheets
 
Join Date: Jul 2007
Posts: 346
Thanks gotadimple and freebird5825.

I did actually buy some Cd's and just like you were saying the year and a half one is at 4% and the 2 year at 4.25% and the 4-5 month one (secondary issue) is at like 3.1%

I bought the intermediate term investment grade bond fund from vanguard over the summer and it's already down about $250-$300 on my original investment of $3000.

Jim
__________________

__________________
summer2007 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
But my Bond Funds really are doing well... Shabber2 FIRE and Money 35 03-15-2008 04:15 PM
Bond funds vs. stock funds summer2007 FIRE and Money 15 01-14-2008 03:22 PM
Hello from NY! Bond funds or what??? linmd56 Hi, I am... 5 11-08-2007 06:15 AM
Target Retirement Funds: Bond Funds vs Actual Bonds? Gearhead Jim FIRE and Money 11 10-23-2007 12:39 PM
Bond Funds Mysto FIRE and Money 37 04-15-2006 10:13 AM

 

 
All times are GMT -6. The time now is 01:14 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.