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Re: Just Say No to Bonds?
Old 06-09-2006, 07:03 PM   #41
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Re: Just Say No to Bonds?

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Originally Posted by Rich_in_Tampa
Not according to this from Lucia's web site. Run the Demo - it says just the opposite of what you said: empty 1, then empty 2, then fill 'em from 3 after 14 years. Check it out.
I wonder how much his clients are paying for this novel advice...
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Re: Just Say No to Bonds?
Old 06-10-2006, 03:11 AM   #42
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Re: Just Say No to Bonds?

actually i think everyone kind of does the 3 bucket thing without realizing it although its usually a hodge podge of stuff and amounts with no rhyme or reason..we have our cash bucket we have our bonds and conservative stuff and we have our stocks....the bucket system just helps you sort it out with a dedicated portfolio for each catagory and a well thought out amount for each rather than the seat of ones pants...
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Re: Just Say No to Bonds?
Old 06-10-2006, 07:15 AM   #43
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Re: Just Say No to Bonds?

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Originally Posted by Cute Fuzzy Bunny
Dang, I thought this was going to be a thread about baseball.

Another ER without a lot of bonds.* I think its 7-8% of our holdings and half of those are junk.* I'm going to sell the junk next month and put the proceeds into equities.

My formula is paying off the debt, controlling expenses, everything into high dividend paying equities, live off the dividends, and keep just one years expenses in cash, just in case.

i just bought dvy...looks like an interesting etf
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Re: Just Say No to Bonds?
Old 06-10-2006, 07:42 AM   #44
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Re: Just Say No to Bonds?

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Originally Posted by Cute Fuzzy Bunny
Another ER without a lot of bonds. I think its 7-8% of our holdings and half of those are junk. I'm going to sell the junk next month and put the proceeds into equities.

My formula is paying off the debt, controlling expenses, everything into high dividend paying equities, live off the dividends, and keep just one years expenses in cash, just in case.
CFB,

That seems pretty aggressive presumably because you are very OK with the prospect of going back to work a while should the need arise. If not, how would you react to a 2-3 year bear?

Just curious: if you were older and/or returning to work was not one of your considerations, would you move more to bonds? Or just keep 5+ years in cash rather than 1 or 2 years?

Inquiring minds...
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Re: Just Say No to Bonds?
Old 06-10-2006, 08:03 AM   #45
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Re: Just Say No to Bonds?

Handgrenade wise - since 60% of my income going forward is trad IRA - with RMD in 7 yrs - hence Target Retirement 2015 with it's attendant increasing bonds as I age - along with a damped SD presumably.

So with a little Roth(7%) for my 90's and some dividend stocks(15%) for old age - I'm open to suggestions.

Wag the dog - if I were 100% taxible, I would seriously consider all dividend stock plus some cash. Theory wise.

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Re: Just Say No to Bonds?
Old 06-10-2006, 08:59 AM   #46
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Re: Just Say No to Bonds?

If anyone is interested, Vanguard has a new dividend viper VIG. Launched May 2.

Marketwatch article
http://tinyurl.com/jvtvg
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Re: Just Say No to Bonds?
Old 06-10-2006, 09:33 AM   #47
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Re: Just Say No to Bonds?

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Originally Posted by Rich_in_Tampa
CFB,

That seems pretty aggressive presumably because you are very OK with the prospect of going back to work a while should the need arise. If not, how would you react to a 2-3 year bear?

Just curious: if you were older and/or returning to work was not one of your considerations, would you move more to bonds? Or just keep 5+ years in cash rather than 1 or 2 years?

Inquiring minds...
I am ok with going back to work if we hit a very bad patch, and it was necessary. Work has a lot of definitions.

More likely we cut back a bit on the budget, keep spending the dividends and interest and leave the principal alone, which is pretty much what we're doing right now. And try to scrape up some cash to BUY while everythings on sale...
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Re: Just Say No to Bonds?
Old 06-10-2006, 09:36 AM   #48
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Re: Just Say No to Bonds?

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Originally Posted by mikew
If anyone is interested, Vanguard has a new dividend viper VIG. Launched May 2.
I had awaited that with a lot of interest, but unless theres some funny business around the yield reporting on vanguards web site, or something that needs more than a months worth of data, they're reporting a sub 2% yield for that fund (I think it was 1.7x?). Thats pretty lame for an equity fund touting a high dividend strategy. Then again, they dont quote any yields except the one on the web site, and i think thats a 30 day SEC yield, so perhaps the number will pick up. I dunno.
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Re: Just Say No to Bonds?
Old 06-10-2006, 11:07 AM   #49
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Re: Just Say No to Bonds?

the problem with etf bond funds is its not an automatic reinvestment of dividends...anything i would have saved in expenses buying agg over the fidelity total bond index is lost in the commissions to get the dividends reinvested...assuming 20,000 invested thats about 1000 or so a year in terest...even at the 8 bucks a trade i pay i would have to wait a year to reinvest and 8 bucks is over 1/2 %....
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