Bond fund question

[mathjak107]

every time the fed raised the feds funds rate 1% or more in a year bonds actually did well except 1994 .

but all bets are off starting the 2nd year . they then did not do well .

first column is amount feds funds rate went up . next column what intermediate bonds did

[Chuckanut]

Quote:

Originally Posted by LOL! So with bond funds up since the FOMC decision to raise rates, what does that mean for all the hand-waving going on in this thread?

Obviously, bonds and bond funds are going to crash and probably go to near zero value in a few months. Best to move your money now into those Venezuelan Beaver Cheese Futures that others here have recommended.

Or find some new financial 'product' designed to make you big dollars in a rising interest rate environment.

Or, one could re-balance each year to one's preferred AA, and not worry about it. Just a thought.
.

[pb4uski]

Quote:

Originally Posted by Chuckanut Obviously, bonds and bond funds are going to crash and probably go to near zero value in a few months. Best to move your money now into those Venezuelan Beaver Cheese Futures that others here have recommended. ....

Great idea! What is the ticker for those?

[Chuckanut]

Quote:

Originally Posted by pb4uski Great idea! What is the ticker for those?

If I recall correctly - VBCSKR

[ArkTinkerer]

Given that next year is an election year I'm trying to figure out how to short hot air and bovine excrement. Not interested in them foreign offerings.

[Sunset]

So I have 150K to invest, this is currently in zero interest checking accnt.

Initially I was thinking of going with Vanguard recommendation (robo one)
36K in VTI
24K in VXUS
63K in BND
27K in BNDX

But the way folks talk, perhaps I should I lighten up on the bonds and put maybe 30K of the bond allotment into CD's ?

[mathjak107]

5 year cd's have been doing better then bond funds have

[mathjak107]

Quote:

Originally Posted by Chuckanut Obviously, bonds and bond funds are going to crash and probably go to near zero value in a few months. Best to move your money now into those Venezuelan Beaver Cheese Futures that others here have recommended. Or find some new financial 'product' designed to make you big dollars in a rising interest rate environment. Or, one could re-balance each year to one's preferred AA, and not worry about it. Just a thought. .

forget the beaver cheese . save a tree- eat a beaver .

[pb4uski]

Quote:

Originally Posted by Sunset So I have 150K to invest, this is currently in zero interest checking accnt. Initially I was thinking of going with Vanguard recommendation (robo one) 36K in VTI 24K in VXUS 63K in BND 27K in BNDX But the way folks talk, perhaps I should I lighten up on the bonds and put maybe 30K of the bond allotment into CD's ?

It looks like your AA is ~40/60 so I would go with a balanced fund like Wellesley or the Life Strategy Conservative Growth since it is all in one taxable account... it would be simpler and reduce the need to rebalance.

Or if you carve out some of your fixed income allocation into a CD (which I think is a good idea) then you could mix some CDs and Wellington or one of the Life Strategy funds to get to a 40/60 AA. For example, $95k of Wellington and $55k of CDs would be ~40/60 overall.

If you definitely want index funds then perhaps even the Target Retirement 2015 fund.

However, the four fund approach might give you a bit more tax flexibility if you intend to use these funds in the near future and if taxes are a concern.