Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 12-13-2015, 07:24 PM   #41
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,493
Quote:
Originally Posted by bmcgonig View Post
If credit gets worse on Monday or Tuesday I think that they will not raise. Would be very strange indeed.


Sent from my iPad using Early Retirement Forum
It does seem like that could stay their hand.
__________________

__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   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 12-14-2015, 03:27 PM   #42
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,493
Quote:
Originally Posted by Lsbcal View Post

Still I'm a bit worried about my intermediate bond funds. I'll be reorganizing my deck chairs to increase credit quality. A few I have:
DODIX credit quality = BBB (will decrease this in favor of VFIDX)
VFIDX credit quality = A
BOND credit quality = ?? (M* does not rate this one but management is quick on their feet ... I think. For more info see: PIMCO ETFs - PIMCO Total Return Active Exchange-Traded Fund)
Lsbcal - I'm curious why you choose VFIDX, a predominantly corporate bond fund (even though investment grade), instead of a fund with much higher credit quality (AA rated) like VBTLX.

During a period of credit crisis, or market turmoil, the highest credit quality bond funds tend to behave the best. Even investment grade corporate debt can get knocked hard during liquidity scares.
__________________

__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Old 12-14-2015, 04:10 PM   #43
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Lsbcal's Avatar
 
Join Date: May 2006
Location: west coast, hi there!
Posts: 5,686
Quote:
Originally Posted by audreyh1 View Post
Lsbcal - I'm curious why you choose VFIDX, a predominantly corporate bond fund (even though investment grade), instead of a fund with much higher credit quality (AA rated) like VBTLX.

During a period of credit crisis, or market turmoil, the highest credit quality bond funds tend to behave the best. Even investment grade corporate debt can get knocked hard during liquidity scares.
Well the answer is a bit complicated. First, I have an indicator that is my own concoction to indicate when to reduce stock positions. It turns out that a combo of that and yield curve flattening is a good way to move from an investment grade intermediate bond fund to an intermediate Treasury fund.

I've looked at this with data from July 1987 to now and it seems a gentle way of sidestepping times when credit risk comes up. I always remind myself a 1930's crisis could happen (but probably will not). So that is my current plans and not suggesting anyone else should like this approach.

Also, VFIDX is an index fund (no active management risk) with low ER and a good track record even if one does not trade it. Compared to DODIX it comes out looking pretty good. It looks even better when I employ the switching method to Treasuries.

Here is a table comparing some of the bond funds I own or am considering:


FWIW, I'm probably going to sell my DODIX plus some BOND. I'm then going to be holding VFIDX (largest position), VBTLX, and BOND.

I would welcome any constructive criticism.
__________________
Lsbcal is online now   Reply With Quote
Old 12-14-2015, 04:16 PM   #44
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2005
Posts: 5,414
right now my own holdings are a mix of vanguard vbtlx and fidelity total bond fund , fidelity short term bond , fidelity corporate bond and fidelity limited term bond fund .
__________________

__________________
mathjak107 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
Portfolio Realignment/Liquidation: When to reinvest younginvestor2013 FIRE and Money 10 03-20-2013 04:16 PM
Forced 401K liquidation... Argh!!! FIREd FIRE and Money 24 01-10-2009 10:59 AM
When a Broker goes into forced liquidation Maurice FIRE and Money 1 04-06-2008 10:04 AM
37 year old finally focused on FIRE save4aFIREyday Hi, I am... 6 09-04-2007 02:19 PM

 

 
All times are GMT -6. The time now is 09:29 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.