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Old 09-05-2020, 09:45 AM   #61
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Originally Posted by pb4uski View Post
Actually while they are fairly rare, there are target maturity bond ETFs available, which are in between individual bonds and bond funds/ETFs.
IBDM, IBDN, IBDO, etc are the main holdings of my bond ladder. Been happy with them for near 5 years now. When they mature I'll be extending the ladder with treasuries or FUAMX treasury fund.
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Old 09-10-2020, 11:08 AM   #62
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The minimum has dropped to $350,000.
Back to the OP - Has anyone on here invested in this?

The .40 fee is lower than most managed bond funds and get the advantages of owning bonds instead of mutual funds.

$350k brings it into a more comfortable arena for me.
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Old 09-10-2020, 11:39 AM   #63
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I invested 350,000 in June 2020, to the core bond fund managed by Fidelity. As of today I have 351,034 after fees invested in 39 different bonds. So +0.29%. You can use the analysis tool to see distrubution of corporate vs government and rating and cash flow etc...

At the sametime I invested in BND it is up +1.4% in same timeframe.


Added: One thing is if you decide to stop the managed bond fund, you own the bonds that are in the your account and than you have to sell and/or manage yourself, so a bit more of a hassle than just BND.
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Old 09-10-2020, 12:45 PM   #64
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Originally Posted by capjak View Post
I invested 350,000 in June 2020, to the core bond fund managed by Fidelity. As of today I have 351,034 after fees invested in 39 different bonds. So +0.29%. You can use the analysis tool to see distrubution of corporate vs government and rating and cash flow etc...

At the sametime I invested in BND it is up +1.4% in same timeframe.


Added: One thing is if you decide to stop the managed bond fund, you own the bonds that are in the your account and than you have to sell and/or manage yourself, so a bit more of a hassle than just BND.
Thank you
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Old 09-11-2020, 06:45 PM   #65
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Quote:
Originally Posted by capjak View Post
I invested 350,000 in June 2020, to the core bond fund managed by Fidelity. As of today I have 351,034 after fees invested in 39 different bonds. So +0.29%. You can use the analysis tool to see distrubution of corporate vs government and rating and cash flow etc...

At the sametime I invested in BND it is up +1.4% in same timeframe.


Added: One thing is if you decide to stop the managed bond fund, you own the bonds that are in the your account and than you have to sell and/or manage yourself, so a bit more of a hassle than just BND.
Do you get to see the list of corporate bonds the program invests in? What is a small, sample list with maturity date and coupon rate?
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Old 09-12-2020, 05:44 AM   #66
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It sure felt like bullying to me. It's unfortunate you don't see it, because that means it'll probably continue. Nobody should be discouraged from asking questions.

I understood it just fine before. All I did was find a solid source that said it in a better way.

My issue stems back to this half-truth in post #33, warning bond fund holders about rising interest rates while implying that individual bond holders area unaffected. That statement should have an appropriate warning for bonds.


There's probably a better way to word it, but the point is that all are negatively impacted by the same amount in the end.

If you like the fixed, non-COLA interest rate and return of capital with individual bonds, stay with it. But it's in no way more superior or safer than bond funds.
I look at bonds vs bond funds in this way: If you need to sell some of your bond funds when you have a loss in the fund, because rates have increased, then you are stuck with that loss. I personally invest in a ladder of bonds that result in a bond maturing each year that matches my need for withdrawals that year. (RMD's) I would call this liability matching. I only invest money in a bond fund when I know that I will not touch that fund for the number of years equal to its duration. But I've read that even that approach can be negatively affected if the fund has been forced to sell bonds.
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Old 09-12-2020, 11:46 AM   #67
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Do you get to see the list of corporate bonds the program invests in? What is a small, sample list with maturity date and coupon rate?
YES, Keep in mind these are not equally purchased some represent $3000 others $50,000

023135BC9
AMAZON COM INC SER B NOTE 3.15000% 08/22/2027 CALL MAKE WHOLE
3.15000% 08/22/2027

037833DP2
APPLE INC NOTE CALL MAKE WHOLE 2.20000% 09/11/2029
2.20000% 09/11/2029


06051GJD2
BK OF AMERICA CORP MTN CALL MAKE WHOLE 1.31900% 06/19/2026
1.31900% 06/19/2026


125581HA9
CIT GROUP INC NOTE 3.92900% 06/19/2024
3.92900% 06/19/2024
102.095

14040HCD5
CAPITAL ONE FINL CORP NOTE 2.60000% 05/11/2023
2.60000% 05/11/2023


172967GT2
CITIGROUP INC NOTE 3.50000% 05/15/2023
3.50000% 05/15/2023

20030NCT6
COMCAST CORP NEW NOTE CALL MAKE WHOLE 4.15000% 10/15/2028
4.15000% 10/15/2028

202795JR2
COMMONWEALTH EDISON CO SER 128 BOND 2.20000% 03/01/2030 CALL MAKE WHOLE
2.20000% 03/01/2030

254687FQ4
DISNEY WALT CO NOTE CALL MAKE WHOLE 3.80000% 03/22/2030
3.80000% 03/22/2030

3138WHPY2
UNIFORM MBS POOL #AS7638 2.50000% 07/01/2031
2.50000% 07/01/2031

3140J6GR2
UNIFORM MBS POOL #BM2007 4.00000% 09/01/2048
4.00000% 09/01/2048

31418CS47
UNIFORM MBS POOL #MA3238 3.50000% 01/01/2048
3.50000% 01/01/2048

31418DPB2
UNIFORM MBS POOL #MA4017 3.00000% 05/01/2040
3.00000% 05/01/2040


38141GVM3
GOLDMAN SACHS GROUP INC MTN 4.00000% 03/03/2024
4.00000% 03/03/2024

404119BT5
HCA INC. NOTE CALL MAKE WHOLE 5.25000% 06/15/2026
5.25000% 06/15/2026

46647PBE5
JPMORGAN CHASE &CO NOTE CALL MAKE WHOLE 2.73900% 10/15/2030
2.73900% 10/15/2030

594918BY9
MICROSOFT CORP NOTE CALL MAKE WHOLE 3.30000% 02/06/2027
3.30000% 02/06/2027

59562VAM9
BERKSHIRE HATHAWAY ENERGY CO BOND 6.12500% 04/01/2036 CALL MAKE WHOLE
6.12500% 04/01/2036


61761J3R8
MORGAN STANLEY SER F MTN 3.12500% 07/27/2026 CALL MAKE WHOLE
3.12500% 07/27/2026

718172BM0
PHILIP MORRIS INTL INC NOTE 3.25000% 11/10/2024
3.25000% 11/10/2024

761713BG0
REYNOLDS AMERICAN INC NOTE 4.45000% 06/12/2025 CALL MAKE WHOLE
4.45000% 06/12/2025

912810FT0
UNITED STATES TREAS SER FEBRUARY 2036 4.50000% 02/15/2036 BDS
4.50000% 02/15/2036

912810QE1
UNITED STATES TREAS BDS 4.62500% 02/15/2040
4.62500% 02/15/2040

912810SL3
UNITED STATES TREAS SER BONDS 2.00000% 02/15/2050 BDS
2.00000% 02/15/2050

912828Z94
UNITED STATES TREAS NTS NOTE 1.50000% 02/15/2030
1.50000% 02/15/2030

912828ZB9
UNITED STATES TREAS NOTE 1.12500% 02/28/2027
1.12500% 02/28/2027

912828ZF0
UNITED STATES TREAS NOTE 0.50000% 03/31/2025
0.50000% 03/31/2025

91324PCP5
UNITEDHEALTH GROUP INC NOTE 3.75000% 07/15/2025 CALL MAKE WHOLE
3.75000% 07/15/2025

94974BGA2
WELLS FARGO &CO MTN 3.30000% 09/09/2024
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Old 09-12-2020, 12:05 PM   #68
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Some maturity dates are far out there, e.g., 2050. I doubt I’ll live that long. Therefore, I assume it’s best to put a grandchild as the beneficiary of your bond fund ladder, since, as you said, it’s not easy to manage the bonds you own if you cancel the ladder. Thoughts?
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Old 09-12-2020, 12:44 PM   #69
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Some maturity dates are far out there, e.g., 2050. I doubt I’ll live that long. Therefore, I assume it’s best to put a grandchild as the beneficiary of your bond fund ladder, since, as you said, it’s not easy to manage the bonds you own if you cancel the ladder. Thoughts?
Treasuries are very liquid and very safe and can be sold quickly.

I had 25 individual corporate bonds ($350,000) that I held separately for a few months and they are not nearly as liquid although I was able to sell all of them at a profit and the process took about a week.

I will venture to guess that most of us will pass away with Bonds or bond funds in our portfolio so not sure this is much different.

I would agree that Funds like BND are easier to liquidate than a basket of individual Bonds.

In regards to beneficiary I don't think it matters....
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