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07-29-2013, 10:03 AM
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#1
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Dryer sheet wannabe
Join Date: Apr 2013
Posts: 11
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Guggenheim Bullet Shares
Greetings- Will have some CDs maturing shortly and am rather intrigued by the Guggenheim Bullet Shares as a reinvestment option. Was curious if anyone has any practical experience with them and especially if investors were taking the monthly distributions or reinvesting them? Thanks!
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07-29-2013, 10:09 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
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__________________
Numbers is hard
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07-29-2013, 10:10 AM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Quote:
Originally Posted by Scubablue
Greetings- Will have some CDs maturing shortly and am rather intrigued by the Guggenheim Bullet Shares as a reinvestment option. Was curious if anyone has any practical experience with them and especially if investors were taking the monthly distributions or reinvesting them? Thanks!
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There is another recent thread about these, in which various people go over important aspects, They are very intriguing, but to me at least it appears that none of them yet has adequate liquidity.
Ha
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"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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07-29-2013, 10:14 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: North Scottsdale
Posts: 1,545
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I have the 14, 15, and 16 funds. Take the distributions monthly...don't reinvest. Sold out of some bond funds with longer average duration and went shorter using these funds. No commission trades on Schwab.
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FIRE'D in July 2009 at 51...Never look back!
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07-29-2013, 10:32 AM
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#6
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Dryer sheet wannabe
Join Date: Apr 2013
Posts: 11
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Thanks for the quick responses! Seems a lot of folks are intrigued by these especially once ER'd and preservation of capital becomes all the more important.
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07-29-2013, 10:42 AM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,264
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I liquidated some of my bond mutual funds and have bought some of both the corporate and high yield versions maturing in 2017-2020. It is way too early to give a view on them as I have only held them a couple months.
I'm not reinvesting distributions.
Rightly or wrongly, I am viewing these as a CD substitute since I intend to hold them to maturity. I recognize that if I want out early and rates have increased that I will take a hit on the market value and I also recognize the default risk associated with them vs FDIC insured CDs.
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If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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07-29-2013, 10:42 AM
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#8
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Thinks s/he gets paid by the post
Join Date: Feb 2011
Posts: 1,796
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I may have missed it, but wasn't there a 2012 maturity ETF (or CEF)? How did that wind-up go for investors?
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07-29-2013, 10:44 AM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,264
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Quote:
Originally Posted by ERhoosier
I may have missed it, but wasn't there a 2012 maturity ETF (or CEF)? How did that wind-up go for investors?
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See ETFs | Guggenheim Investments
The one thing about these that I am not keen on is that as the bonds mature in the maturity year they keep the maturity proceeds until the end of the year and in the interim you earn only money market rates, so I'll explore selling six months to a year prior to the terminal distribution.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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07-29-2013, 02:25 PM
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#10
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Moderator Emeritus
Join Date: Apr 2011
Location: Conroe, Texas
Posts: 18,645
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Quote:
Originally Posted by RockyMtn
I have the 14, 15, and 16 funds. Take the distributions monthly...don't reinvest. Sold out of some bond funds with longer average duration and went shorter using these funds. No commission trades on Schwab.
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Curious, it sounds like you can reinvest the dividends into more shares, correct? I may have a look at the high yield ones if offered by Schwab.
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*********Go Astros!*********
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07-29-2013, 02:57 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: North Scottsdale
Posts: 1,545
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Quote:
Originally Posted by pb4uski
See ETFs | Guggenheim Investments
The one thing about these that I am not keen on is that as the bonds mature in the maturity year they keep the maturity proceeds until the end of the year and in the interim you earn only money market rates, so I'll explore selling six months to a year prior to the terminal distribution.
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This is true. For instance the 2013 Bulletshares corporate bond is already 99% in cash so very little interest next five months. I like the idea of selling mid year of the year of maturity.
__________________
FIRE'D in July 2009 at 51...Never look back!
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07-29-2013, 03:55 PM
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#12
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Moderator Emeritus
Join Date: Apr 2011
Location: Conroe, Texas
Posts: 18,645
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Quote:
Originally Posted by RockyMtn
This is true. For instance the 2013 Bulletshares corporate bond is already 99% in cash so very little interest next five months. I like the idea of selling mid year of the year of maturity.
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Thanks, I need to look into these ETF's.
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*********Go Astros!*********
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