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Old 10-27-2011, 04:33 PM   #21
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I wish they would run another special soon. I have some 6% cd's maturing with PF around the first of the year.
Even if they ran a special with an above market rate, with 5 year CD yields at less than 2.5% a bonus rate woudl probably not be anywhere close to what you had.
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Old 10-27-2011, 04:49 PM   #22
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Even if they ran a special with an above market rate, with 5 year CD yields at less than 2.5% a bonus rate woudl probably not be anywhere close to what you had.
I'm not expecting that. Would be nice to get better than 2.5% though.
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Old 10-27-2011, 04:52 PM   #23
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I'm not expecting that. Would be nice to get better than 2.5% though.
I don't have any imminent maturities, but have been holding an excessive amount in a savings account while we did our move and temporarily owned two houses. Now that it is wound up, I have been looking for safe places for the cash at a higher rate. Bought some I bonds and will be on the hunt for more low hanging fruit. If PF screws up and does the 5% 10 year CD thing again I will be all over it once more.
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Old 10-28-2011, 06:26 PM   #24
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Consider PDT or FFC both are closed end funds, invest in preferred stocks and use leverage to some degree. I would put a small amount into one or the other. Yes, the expense ratio is higher than vanguard but the yield is over 7% for PDT 9% of FFC, moderate volatility in share price, and nearly annual increases in dividend. PDT is currently selling at a discount to NAV, FFC is at a premium. I'd at least look at the Vanguard High Yield fund for a portion of your funds.
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Old 10-29-2011, 12:46 AM   #25
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Consider PDT or FFC both are closed end funds, invest in preferred stocks and use leverage to some degree. I would put a small amount into one or the other. Yes, the expense ratio is higher than vanguard but the yield is over 7% for PDT 9% of FFC, moderate volatility in share price, and nearly annual increases in dividend. PDT is currently selling at a discount to NAV, FFC is at a premium. I'd at least look at the Vanguard High Yield fund for a portion of your funds.
Don't invest in closed end funds unless you fully understand the risks and how they generate returns, watch out for leverage and return of capital.....and of course the expense ratios.
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Old 10-29-2011, 11:01 AM   #26
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I like the idea of 10 year penfed CD at 5%. If you held it into the fifth year and cashed it in I believe you would lose that years interest but you would still have made 4% on your money.
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Old 10-29-2011, 11:33 AM   #27
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I hope we see some better rates within the next 5 yrs, as chasing yield in today's market can be a dangerous game.
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Old 10-29-2011, 12:07 PM   #28
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Don't invest in closed end funds unless you fully understand the risks and how they generate returns, watch out for leverage and return of capital.....and of course the expense ratios.
CEFConnect - Brought to you by Nuveen Closed-End Funds is one website for basic education and info on closed end funds.
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Old 10-29-2011, 01:43 PM   #29
 
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Among the funds that I own are Wellesley (VWIAX) & TGCFX (TCW Core Fixed Income I) an intermediate bond fund. In the disatrous year 2008 TGCFX had a total return of 3.99%.
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Old 10-31-2011, 11:07 PM   #30
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Two bond funds in my 401K are VBTIX and PTTRX. They both have performed well the last 5 yrs. plus you get a monthly dividend.

PTTRX did bad the past 6 mos., but Gross has changed his strategy and this past month has done very well. Don't forget he invests in other countries too. VBTiX did well too, but usually PTTRX does better. BUT, VBTIX has a lower cost rate.

IMO, I really don't think the mkt. will hurt the bond funds for at least another year. Everyone says the mkt will be choppy next year and I believe it because of Europe and China.

When the mkt finally does stabilize, maybe a balanced fund like FBALX or the Wellsley fund someone else mentioned.

I was listening to a Fidelity webinar and the speaker was saying he believes Europe will be the next Japan. He doesn't see how Greece can pay off the huge debt they have. If that is the case, it will definately take a while for the mkt to correct. I just read Gross' last newsletter and he sees a slow correction too.
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Old 11-01-2011, 08:08 AM   #31
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Old 11-01-2011, 12:00 PM   #32
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I invest mostly with Vanguard and they have several bond options I like. I like the intermediate investment grade bonds fund and I like their convertible bonds fund (you should consider this as a fund with both bonds and stocks in it). For taxable they have many good muni funds.

For non-vanguard I like Jeff Gundlach's various Doubline funds.
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