Investing in bonds – Question for investing gurus

[EconProf]

If preservation of capital is primary to you, I’d stay away from bonds and bond funds. They look good only on their recent performance, which is enhanced by the unprecedented lowering of interest rates in recent years. If that trend reverses, or merely stops, bond returns go negative or at best flatten out at low levels.

[joec]

If the money is for a home, I’d be hesitant to do anything with it other than cash/CDs/Money Market funds that are instantly liquid. Bond funds have some bad features in that they are perpetual. They never mature so you can’t just hold a bond to maturity and get all your principle back. Lastly, what if EVERYONE dumps the bond fund and the fund managers need to raise cash? They have to sell bonds to meet redemptions which can be a total mess if they have to sell when they don’t really want to…

Also, you never know. What if the government now does crazier stuff and says you can get a 50k tax credit that is refundable and the state of CA gives you another 20k credit?

Heh, who knows what will happen. A lot of times, with housing, it’s more about finding a home you actually want to live in/buy than the lowest price.

Just ask some of the folks who passed the perfect home for a few k and regret it.

[joec]

If the money is for a home, I’d be hesitant to do anything with it other than cash/CDs/Money Market funds that are instantly liquid. Bond funds have some bad features in that they are perpetual. They never mature so you can’t just hold a bond to maturity and get all your principle back. Lastly, what if EVERYONE dumps the bond fund and the fund managers need to raise cash? They have to sell bonds to meet redemptions which can be a total mess if they have to sell when they don’t really want to…

Also, you never know. What if the government now does crazier stuff and says you can get a 50k tax credit that is refundable and the state of CA gives you another 20k credit?

Heh, who knows what will happen. A lot of times, with housing, it’s more about finding a home you actually want to live in/buy than the lowest price.

Just ask some of the folks who passed the perfect home for a few k and regret it.

[joec]

If the money is for a home, I’d be hesitant to do anything with it other than cash/CDs/Money Market funds that are instantly liquid. Bond funds have some bad features in that they are perpetual. They never mature so you can’t just hold a bond to maturity and get all your principle back. Lastly, what if EVERYONE dumps the bond fund and the fund managers need to raise cash? They have to sell bonds to meet redemptions which can be a total mess if they have to sell when they don’t really want to…

Also, you never know. What if the government now does crazier stuff and says you can get a 50k tax credit that is refundable and the state of CA gives you another 20k credit?

Heh, who knows what will happen. A lot of times, with housing, it’s more about finding a home you actually want to live in/buy than the lowest price.

Just ask some of the folks who passed the perfect home for a few k and regret it.

[joec]

If the money is for a home, I’d be hesitant to do anything with it other than cash/CDs/Money Market funds that are instantly liquid. Bond funds have some bad features in that they are perpetual. They never mature so you can’t just hold a bond to maturity and get all your principle back. Lastly, what if EVERYONE dumps the bond fund and the fund managers need to raise cash? They have to sell bonds to meet redemptions which can be a total mess if they have to sell when they don’t really want to…

Also, you never know. What if the government now does crazier stuff and says you can get a 50k tax credit that is refundable and the state of CA gives you another 20k credit?

Heh, who knows what will happen. A lot of times, with housing, it’s more about finding a home you actually want to live in/buy than the lowest price.

Just ask some of the folks who passed the perfect home for a few k and regret it.

[joec]

If the money is for a home, I’d be hesitant to do anything with it other than cash/CDs/Money Market funds that are instantly liquid. Bond funds have some bad features in that they are perpetual. They never mature so you can’t just hold a bond to maturity and get all your principle back. Lastly, what if EVERYONE dumps the bond fund and the fund managers need to raise cash? They have to sell bonds to meet redemptions which can be a total mess if they have to sell when they don’t really want to…

Also, you never know. What if the government now does crazier stuff and says you can get a 50k tax credit that is refundable and the state of CA gives you another 20k credit?

Heh, who knows what will happen. A lot of times, with housing, it’s more about finding a home you actually want to live in/buy than the lowest price.

Just ask some of the folks who passed the perfect home for a few k and regret it.

[bearishgurl]

[quote=joec] . . . Heh, who knows what will happen. A lot of times, with housing, it’s more about finding a home you actually want to live in/buy than the lowest price.

Just ask some of the folks who passed the perfect home for a few k and regret it.[/quote]

joec, this is so true. I think some of these Piggs tend to overanalyze things and are still renters because of this :={

[bearishgurl]

[quote=joec] . . . Heh, who knows what will happen. A lot of times, with housing, it’s more about finding a home you actually want to live in/buy than the lowest price.

Just ask some of the folks who passed the perfect home for a few k and regret it.[/quote]

joec, this is so true. I think some of these Piggs tend to overanalyze things and are still renters because of this :={

[bearishgurl]

[quote=joec] . . . Heh, who knows what will happen. A lot of times, with housing, it’s more about finding a home you actually want to live in/buy than the lowest price.

Just ask some of the folks who passed the perfect home for a few k and regret it.[/quote]

joec, this is so true. I think some of these Piggs tend to overanalyze things and are still renters because of this :={

[bearishgurl]

[quote=joec] . . . Heh, who knows what will happen. A lot of times, with housing, it’s more about finding a home you actually want to live in/buy than the lowest price.

Just ask some of the folks who passed the perfect home for a few k and regret it.[/quote]

joec, this is so true. I think some of these Piggs tend to overanalyze things and are still renters because of this :={

[bearishgurl]

[quote=joec] . . . Heh, who knows what will happen. A lot of times, with housing, it’s more about finding a home you actually want to live in/buy than the lowest price.

Just ask some of the folks who passed the perfect home for a few k and regret it.[/quote]

joec, this is so true. I think some of these Piggs tend to overanalyze things and are still renters because of this :={

[aldante]

If you have over a 1 year time frame but less then 3 years, try looking at a combo of 60% vfiix 40% pttdx.

[aldante]

If you have over a 1 year time frame but less then 3 years, try looking at a combo of 60% vfiix 40% pttdx.

[aldante]

If you have over a 1 year time frame but less then 3 years, try looking at a combo of 60% vfiix 40% pttdx.

[aldante]

If you have over a 1 year time frame but less then 3 years, try looking at a combo of 60% vfiix 40% pttdx.

[Author]

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