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Old 08-07-2016, 01:20 PM   #61
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Originally Posted by Earl E Retyre View Post
How many years out do you need to commit to in order to get 4.5% return on an A rated munibond? Are you sure that this is protecting from inflation 10, 20 ... years from now?
My bond portfolio of 500K, I own about 85 AA rated insured muni bonds, each bond worth $5,000 and I do not own more than 3 bonds with any municipality. I am 47 years old and I build a bond LADDER portfolio with maturity dates from 2017 to 2024. I get close to $23,000 per year in interest and I use the money to buy more bonds. My portfolio grows about 4.5% annually and will always be ahead of inflation. It took me almost 2 years to buy 85 AA rated insured muni bonds because the 4.5% don't come on the secondary market offten.

Note: My bond portfolio is only about 15% of my net worth, it's a very safe bet against inflation and very liquid if needed.

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Old 08-07-2016, 02:16 PM   #62
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I would put it into a nice low-expense index-based Balanced fund and forget about it. (Well I probably would check the value when the stock market hits new highs.)

I wouldn't sweat timing the market because the fund will be self-Balancing.

"Set it and forget it" Investing has been great since I have adopted this strategy since FIRE'ing ~4 years ago. Lower stress/anxiety and better results.


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