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Already covered here - https://www.early-retirement.org/forums/f28/bond-funds-or-bonds-117033-15.html#post2903700. Schwab uses the same terminology - https://www.schwab.com/learn/story/bonds-vs-bond-funds-which-is-right-you, " One key difference between individual bonds and bond funds is that...

I hope it is okay to post that I was incorrect in how I stated that particular post. I agree with pb4uskis's point that I should have stated with bond funds, "the principal" doesn't change daily, I should have stated it as "your principal" may change daily. I meant the principal in your...

You've stated my posts were inaccurate without quoting any of my actual posts and instead making up things I didn't post. The articles are correct as is what I have posted in this and the Golden Period thread, especially regarding the difference in principal values on bonds and bond funds when...

TIPS and TIPS funds are types of bonds and bond funds and the same principles generally apply, except nominal bonds do not have the inflation factors. You specifically asked me to post this discussion here in the Golden Period thread. You also said I was spreading misinformation on individual...

Once you get a tentative budget together, you could post it here or at places like the MMM forum, Reddit lean fire, and Reddit coast fire. People on some of those forums really know how to squeeze a nickel. Reddit has a lot of cool money saving forums like eatcheapandhealthy, frugal and nobuy...

We used the Consumer Expenditure Survey (https://www.bls.gov/cex/tables.htm) as a base for our retirement budget planning. What you spent in the past doesn't matter at this point as much as what plan to spend going forward. We had a lot of fat and waste in our working years budget so after a...

This article lays out the math on how an individual TIPS protects your principal, and makes a nice return, in a rising rate environment with inflation, compared to how an equal investment in a TIPS ETF would lose money. This contradicts your statements regarding TIPS in this post and others in...

I ladder individual CDs, Treasuries, Agencies and TIPS for our fixed income. The CDs are FDIC insured. TIPS and Treasuries are government backed. TIPS are CPI inflation protected and work somewhat like I bonds, but the yields are higher right now. Agencies unlikely to default. They all have...

This is on the Fidelity site: "Fidelity offers investors brokered CDs, which are CDs issued by banks for the customers of brokerage firms. The CDs are usually issued in large denominations and the brokerage firm divides them into smaller denominations for resale to its customers. Because the...

Opportunity cost pertaining to rising rates seems to be pretty standard terminology: "Interest rate risks are the risks that the prices of fixed-income securities, such as bonds, will decline when interest rates rise. This is due to the opportunity cost of missing a more favorable investment...

This site sourced below explains the difference between held-to-maturity debt securities, trading debt securities, and available-for-sale debt securities. "Held-to-maturity debt securities are reported at amortized cost. This is due to the securities being held to collect contractual cash...

The snippet you posted supports what has been posted in this thread recently by youbet on opportunity costs and the Fidelity chart on principal preservation. It isn't a both side issue. The difference in the article between the two bond groups' book values is one is being held to maturity and...

I think this applies to your question: "Are realized gains or losses recorded for held-to-maturity debt securities? If a debt security is classified as held-to-maturity, then the security holder intends to hold the debt security until it matures. Examples of held-to-maturity debt securities...

You can correct me if I am interpreting this wrong, but I believe this matches what investopedia has to say, "For fixed-income securities, as interest rates rise security prices fall (and vice versa). This is because when interest rates increase, the opportunity cost of holding those bonds...

This chart from Fidelity explains which investments will "protect your principle". When market values change, you may have a lost opportunity cost with investments like individual TIPS, corporate bonds and CDs, to invest for a higher amount, but your principle value, the amount you originally...

Great locations usually aren't inexpensive. Housing prices tend to be based on supply and demand, which is why they cost what they do here. For people who like it here and can afford it, why move?

+1. TIPS yields were negative for a year or two before rates came back in 2022. I doubt many individual investors were scooping those up. But a TIPS fund with net inflows wouldn't have the choice to sit on the sidelines waiting for yields to go up.

+1. Investopedia puts it this way, There is virtually zero risk that you will lose principal by investing in T-bonds. There is a risk that you could have earned better money elsewhere. But at least you do get your principal back at maturity, which may or may not be true with bond funds...

We have friends in their 80s and even 90s still active in sports and traveling.

One option for fellow bond fund refugees to consider going forward is a TIPS ladder - The 4% Rule Just Became a Whole Lot Easier - "I built a 4.36% real (inflation-adjusted) systematic withdrawal portfolio using a 30-Year TIPS ladder....For the strategy to work, one would have to build it with...

"People leaving the state have lower incomes and education levels than those moving in, with the state’s high housing costs frequently cited as a reason for leaving....California is slowly sorting into a higher-education, higher-income state."...

In the Golden Period thread, after stating that individual TIPS had big losses last year, Montecfo also stated that, "This is part of the misinformation [DLDS] regularly repeat here. You really should stop...Bonds values fluctuate with interest rates as do bond fund NAVs...The principal value of...

Rising rates reduce the market value of bonds, but they don't change the principal on a bond held to maturity, since you aren't earning market rates on that bond. That is an opportunity cost, but it doesn't change the cost basis of the bond in your brokerage account. If you have a 2%, 2 year...

Income taxes here are also pretty reasonable for us. The state doesn't tax Social Security. On Kiplingers' list for tax friendly states for middle class households, California made #9. The much talked about 13.3% state income tax only kicks in at taxable income over $1M...

California is a huge state, bigger in land mass and more people than many countries, so everyone's experience is bound to be different. Here is a list of cities in California ranked by safety. There is likely to be a big difference in your experiences in crime depending where you live -...