Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
#16
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#17
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04/03/2007 BND (NAV) -1.56% -4.58% -2.46% 0.49% -5.52% -0.02% 0.88% 2.53% |
#18
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1-yr 3-yr 5-yr 10-yr Since inception 04/03/2007 BND (Market price) 0.42% -15.62% -0.02% 9.08% 51.39% BND (NAV) 0.49% -15.66% -0.09% 9.18% 51.43% Benchmark1 0.53% -15.64% 0.15% 9.67% — |
#19
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I see that some of you are Bogleheads. I am one as well, and I wish there was a Boglehead club, but I don't have the expertise that some of you do. Anyone up to the challenge?
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#20
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The commission for funds are generally 1 to 5%. Just that makes me cringe, let alone the low interest bonds have brought in these past years. I have just started back into buying my own CDs, being satisfied with the 5.75% I get for a fixed one year.
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#21
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All of the Vanguard mutual funds are "no load" funds, which means that there is no commisssion paid to anyone. The Vanguard Short Term Bond Index Fund is an excellent bond fund that has an expense ratio of 0.07 percent, and a current yield of 5.19 percent. The expense ratio is the cost to operate the fund and the published yield is calculated after applying the expense ratio. So, the cost to the investor is less than one-tenth of one percent of the amount invested, which is extremely low. The fund has no other fees.
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#22
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#23
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Great info here, thank you everyone.
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__________________
It's all downhill from here! |
#24
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Being a hoglehead and applying his principles are the only way to make money in the market: low cost index funds. But this still requires you have to do some thinking to get in the right index funds.
Some people think that bonds are a safe investment, they are not. I think I remember bonds going down an average of 35% during 2007/2008, a little bit better than the 45% downturn in equities. But the recovery for equities is/was drastically better than bonds. I diversify my holdings over certain sectors or what I see people buying in the market place, never buying any bonds. If I see oil demand going up or global unrest, I’m buying some oil. I like tech, watching meta, Apple, and nvidia bottoming out last year, I’m buying a tech index fund. Russell 2000 is not doing well, so now is the time to look at small caps. Get in when everybody has jumped ship. When I was working and checking out the different fund categories to invest in, bonds always gave you the least amount of return, followed by balanced funds (mix of bonds and equities) which only gained on average 1/3 to 1/2 of what a pure equity fund would gain, or you can get much higher returns if you are able to sleep at night with higher risk equities. |
#25
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Not bond funds but…
I have been in these for the past 12 months or so: iShares 0-3 Month Treasury Bond ETF (SGOV) The Fund seeks to track the investment results of the ICE 0-3 Month US Treasury Securities Index, which is composed of US Treasury bonds with remaining maturities of less than or equal to three months. The Fund invests at least 90% of its assets in the component securities of the Underlying Index. Janus Henderson AAA CLO ETF (JAAA) The Fund seeks capital preservation and current income by seeking to deliver floating-rate exposure to high quality AAA-rated collateralized loan obligations (CLOs). The Fund pursues its investment objective by investing at least 90% of its net assets in CLOs of any maturity that are rated AAA. |
#26
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when
when stock is going down take a look at these kinda like a bond
jepi jepq |
#27
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Bond Funds
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#28
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Who charges that much? Banks?
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#29
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Yes, the share price of the fund may have gone down over 15 years, but that doesn't mean that you lost money. Everytime you reinvest the interest, you purchase more shares. The gain/loss on any fund is the surrender value of the fund less the total investment.
Bonds perform inversely to conventional wisdom. You buy a $100 bond that yields 4%. As interest rates go up. the selling price of your bond goes down. Let's say you want to sell your bond and current interest is 6%. No one will buy your bond for $100 when they can buy a higher yield bond at the same price. So, you have to lower the price of your bond so that it yields 6%. The selling price of your bond is now $66.66. The reverse is true when interest rates go down. Right now, interest rates are high due to inflation. Bonds usually get "called" when interest rates have fallen well below the original yield. It's like refinancing your mortgage when interest rates go down. People buy bonds for many reasons. The most popular reason is that a sector of the bond market issues bonds that are not taxed by the IRS or the state. These are bonds issued by any state, city, village, etc. and are very popular in high tax states such as New York, Illinois, California, etc. For example, a $100,000 bond, yielding 6%, issued by either New York City or State, would earn $6,000 that would not be taxed by New York City, New York State or the IRS. Hope this helps. |
#30
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The immediate value of a bond or bond fund, moves inversely with interest rates.
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Closed Thread |
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