Poll: How are your fixed income assets invested?

[foxfirev5]

I'm in bond funds (TBM, Pimco TR,) as these are the options for my retirement accounts. I would prefer to have a ladder of individual bonds but its not possible.

 

[arebelspy]

That would mix two questions and risk compromising the result. I am just trying to find out how many people (go to the trouble to) invest in individual bonds vs bond funds, that simple.

Gotcha!

 

[obgyn65]

+1. I am not sure how best to answer the poll for that reason. Sorry.

Hmm, pretty limited poll. Other fixed income assets have been outperforming bonds. Personally prefer stable value and CD's right now. Inflation protected bonds might be good.

 

[Midpack]

Hmm, pretty limited poll. Other fixed income assets have been outperforming bonds. Personally prefer stable value and CD's right now. Inflation protected bonds might be good.

Sorry, maybe a poll of your own with what you want to ask?

 

[scrabbler1]

I interpreted the question as Midpack intended. All of my fixed income holdings except for a small amount in my local bank's checking account to meet minimum balance requirements and get everyday banking services are in bond funds.

The bond funds I own are quite varied, from home-state muni bond to national muni bond to intermediate corporate bond to just-below-investment-grade (BB) long-term corporate bond.

 

[MichaelB]

Hopefully the question makes what I'm polling clear...

I thought it was very clear, and it looks like the response (so far) is too. Forum members prefer bond funds over individual bonds by more than a 3 to 1 margin.

 

[youbet]

Inflation protected bonds might be good.

Don't you think they're a bit expensive right now? I own some (ETF's, MF's and individual issues) I picked up in the past that are up nicely. I'm hesitant to buy more at today's prices which seem expensive compared to what I paid. In fact, I've been thinking about harvesting some LT CG's from these holdings and only hesitate because I don't know how I would reinvest the money today.

Edit: I just noticed Friar1610's thread on this subject. Best to discuss there.

 

[67walkon]

We're probably around 80% in bonds, 10% equities and 10% bond funds. But the number of individual bonds we have probably make the holding more like a fund in some ways. Since we aren't trading them and just holding them for the income, I like knowing what kind of income we will get unless the bonds are called or default. With the number of different issues, some do get called but so far none have defaulted.

Is there a consensus that bond funds outperform bonds for either income or appreciation?

 

[Rambler]

In my taxable, I hold bonds, mostly tax free munis on the fixed income side of the AA. In my work related non-qual deferred comp plan, only bond funds are available for the FI. AA is about 60/40 overall, with a little more equity in the def comp, and a little more bonds in the taxable. I can't touch the def comp until 6 years after I leave the company, and the payout is over 10 years from the start of payments...so if I left now, I would be 66 when the last check shows up...but it looks like I've still got some time in the saddle. I really hate having so few options with that def comp plan, but it pays a 6% match, so I keep putting money in.

R

 

[Lsbcal]

Have 20% of FI in older high yield I-bonds.

Rest is in bond switch strategy: currently sitting in PTTRX (Pimco Total Return)
Backtested strategy based on math not hunches, switches between:
1) cash
2) Vanguard Intermediate Treasury
3) PTTRX (or could substitute DODIX or VBTLX)

This is my way of dealing with the dreaded rising rates fears.

 

[Rob-N-Lorrie]

I inherited a managed account at Morgan Stanley and most bonds are in individual corporate fixed income bonds, yielding anywhere from 4.8% to 7.65%. I'm looking to sell some stock and buy more of these.

 

[gerntz]

I have more than 30% in individual muni bonds, but these were bought in '08 and '09 during the market drop and the bonds were being sold in panic mode and the deals were too good to pass up. Before that and since, I prefer funds to individual bonds. This past year, we have also invested in some muni CEFs, but they are risky.

Good call.

 

[freebird5825]

Bonds funds (VWALX, VWITX, VMLTX) plus a nice dab of pssst Wellesley in taxable,
DODIX (in Roth),
EE series bonds (1996-7) and I bonds(2004-5)
Emergency fund in VYFXX (NY TE money market fund)

AA 30/70