I choked

[Koolau]

You’ve got that AA reversed.

Ooops! I don't know what I was thinking. My usual comfort zone is like 35/65 in my port. Off day? You decide.

 

[jazz4cash]

I have had bonds downgraded that did not default so I wouldn’t use that as an accurate indicator.

I meant it’s likely the bond would be downgraded so if a default occurred it would be a less than A rated bond.

 

[jazz4cash]

I don't understand. Is there a typical result when a company defaults? Do bondholders get partial payment? Do bondholders even receive notification of default? I suppose there are innumerable outcomes. I just have no idea what a default really looks like..Anyone here ever been a holder of a defaulted bond?

I had some muni bond downgrades at the beginning of the pandemic. Almost every time I log into Fidelity I get a notice of a material event. Nearly all of these are trivial.
Here is Motley Fool’s description of the default process.

https://www.fool.com/knowledge-center/what-is-a-bond-default.aspx

 

[Koolau]

I meant it’s likely the bond would be downgraded so if a default occurred it would be a less than A rated bond.

That calls for some more research - not that I would know how it would be done. So, for instance, could default of an A rated bond include that it was ONCE (or ever) an A rated bond and then was downgraded and THEN eventually defaulted? IOW were all of those 2+% A rated bonds still A rated when they defaulted? I'm guessing they were, but it does beg a good question whether downgrading from A occurred before default. YMMV

 

[jazz4cash]

That calls for some more research - not that I would know how it would be done. So, for instance, could default of an A rated bond include that it was ONCE (or ever) an A rated bond and then was downgraded and THEN eventually defaulted? IOW were all of those 2+% A rated bonds still A rated when they defaulted? I'm guessing they were, but it does beg a good question whether downgrading from A occurred before default. YMMV

Agreed.

 

[COcheesehead]

That calls for some more research - not that I would know how it would be done. So, for instance, could default of an A rated bond include that it was ONCE (or ever) an A rated bond and then was downgraded and THEN eventually defaulted? IOW were all of those 2+% A rated bonds still A rated when they defaulted? I'm guessing they were, but it does beg a good question whether downgrading from A occurred before default. YMMV

I would take the data at face value meaning, it was A rated at the time of default. Now could it have been downgraded to an A from Aa or AA or…and then defaulted? Maybe.

 

[cnocmmz]

Yeah, I-bonds are as good as they reset semi-annually.

 

[rrs26ja]

Alternative Investments

Look at alternative investments. Yieldstreet is one company that does this. I am with e3 Wealth and they do a portion of my money in alternative investments. Most of these are real estate like multi family, but there are others like art, wine. These are usually solid investments that pay nice monthly dividends.

 

[lawman]

Look at alternative investments. Yieldstreet is one company that does this. I am with e3 Wealth and they do a portion of my money in alternative investments. Most of these are real estate like multi family, but there are others like art, wine. These are usually solid investments that pay nice monthly dividends.

BLNDX has been gold for me ...........so far

 

[Koolau]

BLNDX has been gold for me ...........so far

Then again, gold has been, well, gold for me. Small portion of my Port. Served me well during the great recession but YMMV.

 

[lawman]

Then again, gold has been, well, gold for me. Small portion of my Port. Served me well during the great recession but YMMV.

Yup..I was buying gold before stocks and bonds..I also have a ton of silver I bought at the peak when the Hunt boys were trying to corner the market.

 

[Rowej]

But would you really want to know?

 

[Koolau]

But would you really want to know?

Sorry, know what?

 

[Rowej]

Sorry, know what?

I was responding to Lawmens comment about “If he only knew when he was going to die”
Lawmen

That's my conundrum...If I knew I would never need to sell my fund it would be an easy choice..But no one knows what his future financial needs will be..Also, if I just knew when I was going to die this would be much easier..

 

[Koolau]

I was responding to Lawmens comment about “If he only knew when he was going to die”
Lawmen

That's my conundrum...If I knew I would never need to sell my fund it would be an easy choice..But no one knows what his future financial needs will be..Also, if I just knew when I was going to die this would be much easier..

Yeah, I get it now. I don't want to know, but you are right that it would make planning a lot more efficient.

 

[Lstansbury]

These guys like BLNDX

https://www.macroaxis.com/invest/advice/BLNDX

Say it is fairly valued, unlikely to experience much distress, over 40% held in Cash. That cash piece was odd.

YMMV

As for choking, I fell ya'. I just sold some of my Exxon stock that I inherited at $35 a share 2 years ago. It was trading at $104 when I sold it. 300%!!!
So the whole "sell high, buy low" kept ringing in my ears. Is it market timing? Is it choking? Or is it just selling at a high?

I'm putting the gains into a 3.15% CD for the next few years, which is almost exactly what the dividend payout is on XOM.

 

[Imackenzie]

Warning--Part of this is not this is not correct

OP - Buy I-bonds of course as the rate is ~9% and guaranteed no-loss.

Limit is $10K for you, $10K for your Spouse, $10K for your trust (if any), etc...
Plus your spouse and you can buy now, a $10K I-bond for each other.

We bought this year's $10K allotment , plus bought $10K gifts for each other for the next 3 years. A total of $80K put into I-bonds this year.
We also did the $5K income tax refund to I-bond but it's too late to do for this year.

A husband and wife cannot each buy a 10K i-Bond and then each gift each other another 10K i-Bond.The gift counts towards the maximum personal limit of 10K per person per year.

 

[REWahoo]

A husband and wife cannot each buy a 10K i-Bond and then each gift each other another 10K i-Bond.

Actually you can if you leave the bonds in your "gift box" until the following year. Read all about it here: Buy I Bonds as a Gift: What Works and What Doesn’t

 

[Imackenzie]

Interesting...

Interesting and true--but the year that you complete the gift that person cannot get another i-Bond and it can't be cashed until it is completed... So, still only one bond a year at the end of the day per individual. I didn't realize though that the gifts in the "gift box" earned interest so that does make them useful for the long term if rates are good (like now!)

 

[REWahoo]

I didn't realize though that the gifts in the "gift box" earned interest...

Bonds purchased and placed in your gift box also starts the clock running on maturity date, another big plus.

 

[Koolau]

Trust our gummint to come up with something complicated like this!

 

[pb4uski]

Trust our gummint to come up with something complicated like this!

I look at it differently.... trust the electorate to fail to understand something that is pretty simple... in part because they are not willing to spend a few minutes reading about it.

 

[COcheesehead]

I look at it differently.... trust the electorate to fail to understand something that is pretty simple... in part because they are not willing to spend a few minutes reading about it.

Yep, if you know the rules, you can play the game. Works that way with taxes and a lot of other “complicated” stuff.

 

[pb4uski]

I have to think that our public education system has failed us when i-bonds are considered too complicated.

 

[OldShooter]

I have to think that our public education system has failed us when i-bonds are considered too complicated.

I tend to agree. Math-a-phobic teachers (and proud of it) infuriate me. But remember that half the population has below-average intelligence.