Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 09-14-2013, 09:45 PM   #41
Thinks s/he gets paid by the post
nun's Avatar
Join Date: Feb 2006
Posts: 4,867
Originally Posted by rayvt View Post

By holding on to a bond to maturity vs. selling at a loss brfore maturity all you are doing is changing the shape of your time-valued total return -- you are not changing the NPV at all.
Everything comes to he who waits........
“So we beat on, boats against the current, borne back ceaselessly into the past.”

Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
nun is offline   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 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 09-15-2013, 10:16 AM   #42
Recycles dryer sheets
fidler4's Avatar
Join Date: Mar 2013
Posts: 241
Originally Posted by brewer12345 View Post
It is amazing to me how something as simple as bonds can confuse so many people.
It is amazing to me how something as simple as bonds can confuse ME most of the time. I think instead of "confused about dryer sheets" my avatar should say "confused about bonds"
fidler4 is offline   Reply With Quote
Old 09-24-2013, 03:02 AM   #43
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2005
Posts: 5,466
bond funds are generally buying and selling all the time so in a rising rate scenerio higher interest bonds are being added all the time as bonds mature or are sold off..

you will always be behind the curve in a bond fund if rates keep rising but if they level off eventually the extra interest over x amount of years that equal the funds duration will make you whole again.

throw in rebalancing and reinvestment and you can come out with nice profits down the road.

do you know if you had an equal mix of gold,stocks , cash and bonds and if you bought the gold at the highest peak back in the 1980's and just reblanced once a year that your gold and equities would have been worth almost the same at one point before gold slid back.

you couldn't have bought your gold at a worse time yet the gold actually nudged out the s&p 500's growth before gold slid back.
mathjak107 is offline   Reply With Quote
Old 09-24-2013, 08:37 AM   #44
Thinks s/he gets paid by the post
Join Date: Apr 2010
Posts: 3,843
Agree with her but it is certainly not rocket science...just understanding the math.

Whole life...never bought it. Group term did the trick. Far more coverage at a fraction of the cost. And for the insurance salespeople...yes I love my wife and kids which is why I went with term insurance. It provided the greatest dollar coverage bang for the buck in those early years when coverage was essential.

Immediate annuity? The math screams no...wait until we have a little will come. Then the math works a little better.

Bond fund? Yes, but it is a very short term bond funds. We don't do the long term ones in this climate. Perhaps if we get some inflation and the rates go up we will change our perspective.

Is she a genius? IMHO no, she has common sense and understands math. A big problem is that people no longer think for themselves or bother to do the research. And many are simply too lazy to follow the 'trust but verify' method when dealing with so called advisors. Many of whom should not be in the business let alone looking after other people's financial well being.
brett is offline   Reply With Quote

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

» Quick Links

All times are GMT -6. The time now is 05:46 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.