Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
PTY advice!
Old 02-28-2011, 08:02 PM   #1
Dryer sheet wannabe
 
Join Date: Nov 2007
Posts: 20
PTY advice!

Greetings!

Two months ago, I put a bunch of money into PTY (Pimco leveraged bond fund). The thinking was that it was a relatively safe place to keep fixed income dollars in my 401K. It had a yield of about 6.5%, so not expecting much.

Itís up 13% in the 2 months since I bought it.

IYO, should I Buy, Sell or Hold?

Thanks!
__________________

__________________
scooter260 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-28-2011, 08:07 PM   #2
Moderator Emeritus
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 32,267
Quote:
Originally Posted by scooter260 View Post

IYO, should I Buy, Sell or Hold?
Yes, definitely!
__________________

__________________
Numbers is hard...



REWahoo is offline   Reply With Quote
Old 02-28-2011, 08:09 PM   #3
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,379
I would do what REW recommends.
__________________
73ss454 is offline   Reply With Quote
Old 02-28-2011, 08:24 PM   #4
Dryer sheet wannabe
 
Join Date: Nov 2007
Posts: 20
OK!
__________________
scooter260 is offline   Reply With Quote
Old 02-28-2011, 08:29 PM   #5
Moderator Emeritus
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 32,267
Scooter, thanks for having a sense of humor.

To answer your question seriously, a leveraged bond fund is not what I would consider a "relatively safe place to keep fixed income dollars". What other options are offered in your 401k?
__________________
Numbers is hard...



REWahoo is offline   Reply With Quote
Old 03-01-2011, 05:58 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 14,819
Anything leveraged is not a safe place for your money.

What is your investment objective with this money? Has it changed since you bought this instrument? Did you do enough due diligence at the time of purchase to really understand what you own?
__________________
"To be a man means that you are brave, loyal and true. When you are in the wrong, you own up and take your punishment. You don't take advantage of women. As a husband, you support and protect your wife and children. You are gracious in victory and a good sport in defeat. Your word is your bond. Your handshake is as good as your word... When the ship goes down, you put the women and children into the lifeboats and wave good-bye with a smile." C Murray
brewer12345 is offline   Reply With Quote
Old 03-01-2011, 06:17 AM   #7
Thinks s/he gets paid by the post
nun's Avatar
 
Join Date: Feb 2006
Posts: 3,071
Quote:
Originally Posted by scooter260 View Post
Greetings!

Two months ago, I put a bunch of money into PTY (Pimco leveraged bond fund). The thinking was that it was a relatively safe place to keep fixed income dollars in my 401K. It had a yield of about 6.5%, so not expecting much.

Itís up 13% in the 2 months since I bought it.

IYO, should I Buy, Sell or Hold?

Thanks!
A closed end, "junkish", highly leveraged bond fund is NOT "a relatively safe place to keep fixed income dollars"

Think of this more as an equity fund with high fees and with the added risk of exposure to interest rate fluctuations. You don't get the big returns without big risks. I'd be taking profits and rebalancing. PTY has done very well since the crash so I'm not saying get out of it completely, but you must realize that it is a risky place to put your money.
__________________

__________________
nun is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Pimco PTY and Reaves UTG nun Stock Picking (Individual Security Analysis) 2 03-08-2010 05:49 AM
Would I be able to ask for some advice please. ausaus24 Other topics 33 12-08-2008 08:38 AM
Looking for advice. Videonut85 Young Dreamers 12 08-09-2008 09:08 PM
Would Like Some Advice glen12 Life after FIRE 25 11-16-2007 02:28 PM
Looking for Advice Rick Other topics 33 06-25-2004 03:50 AM

 

 
All times are GMT -6. The time now is 12:45 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2014, vBulletin Solutions, Inc.

Early Retirement News right to your Email!

Stay up-to-date with all the latest news to your inbox!

unsusbcribe at anytime with one click

Close [X]