Suze Orman and Bond Funds

[pb4uski]

Probably in the range of 20. The 2011 and 2012 Corporate Series paid a bit over 20 as a return of investment in their final distributions (see ETFs | Guggenheim Investments). Also, the 2013 Corporate series seems to be on track to do so as well (see the pdf on the maturity process on this page ETFs | Guggenheim Investments).

The way I look at it the 2.24 of the 2.30 is a premium to reflect that current portfolio yields are lower than the portfolio coupon and the .06 premium is similar to a commission. I focus on the YTW after considering the effect of the premiuum over the NAV shown on ETFs | Guggenheim Investments. It currently indicates that the YTW for the 2016 series would be ~.84% so if I was going that short I would probably go with a 3 year CD or an online savings account.

My time horizon is longer with the 2019 and 2020 series and at the time I bought them the YTW was better than CDs with a similar maturity.

YMMV and you could also address your questions to Guggenheim. I found them to be pretty responsive when I corresponded with them prior to purchasing.

 

[Ready]

Have you looked at any of the other bond funds with fixed maturity dates, like the Fidelity Municipal Income 2019 fund (FMCFX)? Does Vanguard have any fixed maturity bond funds?

 

[pb4uski]

No, munis make no sense for me given my low tax bracket in ER. Vanguard does not have any target date maturity bond funds. For corporate and high yield bonds, Guggenheim was the only provider when I bought mine, but I think Ishares has come out with an ETF in the last six months.

 

[RockyMtn]

+1 which is why I went with the Guggenheim Bulletshares - I give up 24 bps but they do the picking.

Ditto here.