Fixed Income Investing II

[imbatman]

Thanks for responding @MarieIG, perhaps that thread devolved overnight without my knowledge and did need removal, I hadn't considered that.

@montecfo I prefer targeted threads myself so I don't have to read about treasuries when I am not in the market for them, but perhaps that is just me. If this generic topic is what the majority wants, I will just adjust and move along.

 

[ShokWaveRider]

+1000

PB4USKI: You have also been a great contributor too, I always make a point of reading your posts word for word, I cannot say that for some others here. Do not go over to Reddit, otherwise others will have to follow you too.

I for one do not need another forum to review.

 

[target2019]

https://www.early-retirement.org/fo...od-for-fixed-income-investing-114400-125.html

One day only the trees will remember those 4,971 posts.

What is "Fixed Income Investing" to others? Or is it preferred to say what it is not?

 

[ShokWaveRider]

Looks like this thread has been replaced by this one already and it is holding on track:

https://www.early-retirement.org/forums/f28/fixed-income-investing-118443.html#post2954580

 

[COcheesehead]

https://www.early-retirement.org/fo...od-for-fixed-income-investing-114400-125.html

One day only the trees will remember those 4,971 posts.

What is "Fixed Income Investing" to others? Or is it preferred to say what it is not?

It is an investment that produces income and returns to a predetermined fixed amount at maturity.

 

[Montecfo]

Thanks for responding @MarieIG, perhaps that thread devolved overnight without my knowledge and did need removal, I hadn't considered that.

@montecfo I prefer targeted threads myself so I don't have to read about treasuries when I am not in the market for them, but perhaps that is just me. If this generic topic is what the majority wants, I will just adjust and move along.

I hear you. Also curious: why corporates and agencies but not treasuries and CDs?

To me the shopper for treasuries would also be interested in CDs and possibly agencies.

 

[COcheesehead]

I hear you. Also curious: why corporates and agencies but not treasuries and CDs?

To me the shopper for treasuries would also be interested in CDs and possibly agencies.

There already are separate threads for those investments.

 

[MarieIG]

Thanks for responding @MarieIG, perhaps that thread devolved overnight without my knowledge and did need removal, I hadn't considered that.

. . .

Your thread/ initial post is back online.

 

[MichaelB]

Some members want threads dedicated to investing in individual bonds, and some members want threads discussing bond funds and overall fixed income investing. All are legitimate and should be encouraged here.

Preferred stocks https://www.early-retirement.org/fo...bad-and-the-in-between-2015-2020-a-77428.html

Muni bonds https://www.early-retirement.org/forums/f44/muni-bond-and-muni-bond-fund-discussion-104000-29.html

CDs https://www.early-retirement.org/fo...ead-2023-please-post-updates-here-116449.html

Corporate bonds https://www.early-retirement.org/fo...ncy-gse-bond-deals-and-new-issues-118472.html

Treasury bonds https://www.early-retirement.org/forums/f28/treasury-bills-notes-and-bonds-discussion-115186.html

 

[tulak]

I had not seen the post that Freedom56 was leaving. If that happens it is a tragedy but I would be interested in the Reddit link if someone has it.

I’d also be interested in the Reddit link if someone has it. Feel free to PM me.

I wasn’t participating, but actively consuming and the thread got me to rethink my allocation towards fixed income. I’ve always been heavy in equities, with no regrets, but I’ve never lived in a period where you can get 5-6%+ guaranteed with no loss of principal.

That’s truly amazing, especially considering how hard it was to get a meager 1-2% return not that long ago.

 

[d.davis]

An advantage to this catchall thread was the discussion of the impact of state taxes when comparing the different fixed income vehicles.

Sent from my moto g power using Early Retirement Forum mobile app

 

[ShokWaveRider]

What is the point of this Thread? It is supposed about fixed income investing or where to find information about Fixed Income Investing? What am I missing.

 

[audreyh1]

I did two days ago but they deleted it, I guess they only want corporate bonds in this generic thread.

There was/ is no objection to the topic of corporate bonds. The thread in question quickly devolved into a vitriolic firestorm of insults and was consequently pulled.

Sounds like you can try again imbatman. We really do need a separate thread dedicated to corporate bonds.

 

[MarieIG]

Sounds like you can try again imbatman. We really do need a separate thread dedicated to corporate bonds.

It's back Audrey.

 

[imbatman]

https://www.early-retirement.org/fo...ncy-gse-bond-deals-and-new-issues-118472.html

 

[Rickt]

I had not seen the post that Freedom56 was leaving. If that happens it is a tragedy but I would be interested in the Reddit link if someone has it.

+1
Freedom helped us a lot with his knowledge and real time info. Hope he joins this thread. I would also like to know where he is discussing on Reddit.

 

[Fotodog]

Freedom, glad to see that you’re still here! It would be a shame to lose your advice and perspective. Your Golden Age thread was the best source of information I have found on fixed income investing, and I read every post. It’s not often that a single thread on a forum can motivate people to change how they invest their hard earned dollars, but yours did that for me and others.

I think your thread was hijacked by a few argumentative people, which is unfortunately common on the internet. I hope the moderators keep that in mind.

Edit: Freedom made a post and it was deleted.

 

[Echard]

Why are there Fixed Income I and Fixed Income II Threads?

 

[COcheesehead]

Freedom, glad to see that you’re still here! It would be a shame to lose your advice and perspective. Your Golden Age thread was the best source of information I have found on fixed income investing, and I read every post. It’s not often that a single thread on a forum can motivate people to change how they invest their hard earned dollars, but yours did that for me and others.

I think your thread was hijacked by a few argumentative people, which is unfortunately common on the internet. I hope the moderators keep that in mind.

Edit: Freedom made a post and it was deleted.

He’s gone. He said as much.

 

[COcheesehead]

I'm sure he will be back. One thread getting closed isn't the end of the world and shouldn't scare anyone off permanently - new ones can be opened easily enough, just as this one is the replacement of the previously long running thread, as per OP. The CD thread is closed and a new one started every year, for example.

He made a post which was deleted and he stated he was moving on.

 

[Fotodog]

If the moderators allow it, it would be great if the link to Freedom’s Reddit discussion could be shared. If not, I would also appreciate a PM with the link.

I understand it’s a difficult balance for the moderators in trying to keep civil discourse on a forum versus letting people express their strong opinions.

 

[G-Man]

PB4USKI: You have also been a great contributor too, I always make a point of reading your posts word for word, I cannot say that for some others here. Do not go over to Reddit, otherwise others will have to follow you too.

I for one do not need another forum to review.

I agree. Pb4uski is highly respected by me as well.

 

[Dtail]

I unfortunately don't believe he will be back. A few long time posters who had some back and forth recently have not returned.

 

[ut2sua]

For me, the reason I miss having Freedom's input so much is the fact that he was opening another door of knowledge to me (and obviously to many others) on the fixed income side. This is similar to the door that was opened to me by John Bogle on a good way to invest successfully. Freedom made statements that he believed in (rightly or wrongly so), and folks have the options of following his thinking, or not. Freedom did not demand that we follow his way to invest.
All the side arguments against Freedom did not add to the general knowledge that the old thread brought, I would like to note.
I do hope Freedom will return to this wonderful forum. Regardless, I would like to recognize the valuable effort that he has provided to many of us. Thank you very much for all your input Freedom.

 

[Mulligan]

One thing that needs to be thought out based on ones particular income needs is “reinvestment risk”. It gets glossed over a bit being the short end is so high and easy pickings from the tree, but it is just as real a risk as duration and credit risk.
For example if you ladder out to 5 years on say CDs and they are callable, they could get redeemed at an inopportune time on the yield curve and next thing you are reinvesting several hundred bps lower on something you were counting on for a few more years.
I tend to buy noncallables. And if you buy bonds with duration that are noncallable you get your cake or eat it too if yields fall. If you buy callables, you could wind up with fork in hand and nothing to eat. Lets take an example “Back in the day”. Around the turn of century Walmart issued a 7.55% noncallable bond that matures 2030.
Based on what went on, you would have had the option to continuously clip the coupon until 2030, or take a massive cap gain, as Walmart has continuously over the years offered tenders 50% above purchase price to knock them out. If one had bought a callable bond, they would have been redeemed, suffered reinvestment risk considerably lower, and no cap gain from it being redeemed. Just something to consider if one is not cognizant of it.
And each persons situation is different. I got my friend to get his dad out of over $500k sitting in basically zip savings accounts into rolling 1 and 3 month Tbills. His biggest excitement of the month is my friend printing the statement off and showing him his income deposited into his bank account. But he doesnt care about reinvestment risk at 86. He doesnt spend it anyways and would just put it back in savings if tbills ever went to zero. Its not changing his life either way because he doesnt spend any of it anyways.