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Old 01-06-2016, 11:26 AM   #21
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The 4% drop is already made up for by the 4% dividend.

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Old 01-06-2016, 11:42 AM   #22
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The 4% drop is already made up for by the 4% dividend.

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Subtract from that 2% inflation and maybe 0.5% taxes and you are at -2.5%... depending on your tax bracket.
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Old 01-06-2016, 01:34 PM   #23
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The 4% drop is already made up for by the 4% dividend.
Not in 2015 it wasn't. The -4% was the Total Return for 2015.
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Old 01-06-2016, 04:15 PM   #24
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Rather than a bond fund or ETF, I would suggest a ladder of individual bonds. That way, if rates rise, you will still get back the face value at maturity and you can reinvest at the higher rate.
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Old 01-06-2016, 06:17 PM   #25
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Rather than a bond fund or ETF, I would suggest a ladder of individual bonds. That way, if rates rise, you will still get back the face value at maturity and you can reinvest at the higher rate.
+1 or if you go that direction an easier way to get the same impact with more diversification are the target maturity bond funds which are like owning a bond portfolio that matures in a certain year.... Guggenheim Bulletshares or Blackrock iBonds. The ERs are 0.24% and 0.10%, respectively.

I own the 2020 Corporate versions of each and some others.
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Old 01-06-2016, 08:43 PM   #26
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I bought $275k worth of BLV in September of 2014 for a cost of 88.20 today it is worth 87.76 for a 1/2% loss on the nav price, but is still ahead considering the dividends.

But many here have missed the whole point. Long term bonds (BLV) are usually negatively correlated with stocks. Usually, when one goes up the other goes down. That is what I'm talking about when I say the overall "system" is less volatile then the individual components.

The beauty of being in charge of one's own finances is that we can all have the investments our own way. I will enjoy a lesser volatility and those who are largely invested in stocks will get a better return if they wait long enough.

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