[enron_by_the_sea]

Not directly related to the question asked:

The more I think about our health “insurance” scam, the more I see us moving towards something that George W. Bush has already created – HSA accounts with high deductible insurance.

I see these plans becoming more and more common in the workplace already and I fear that with the new healthcare “reform” passed, the trend towards them is only going to accelerate.

America will not accept any other option – true free market, completely govt. operated plan, Swiss model, French model, British model, Anarchy, Jungle Law ….

Like it or not – the future of our healthcare is HSA+HDHP and some bargaining with your favorite doctor.

I am in the 5th stage of Anger-Denial-Bargaining-Depression-Acceptance cycle of this issue. Most of the country seems to be in stages 2 and 3.

[enron_by_the_sea]

Not directly related to the question asked:

The more I think about our health “insurance” scam, the more I see us moving towards something that George W. Bush has already created – HSA accounts with high deductible insurance.

I see these plans becoming more and more common in the workplace already and I fear that with the new healthcare “reform” passed, the trend towards them is only going to accelerate.

America will not accept any other option – true free market, completely govt. operated plan, Swiss model, French model, British model, Anarchy, Jungle Law ….

Like it or not – the future of our healthcare is HSA+HDHP and some bargaining with your favorite doctor.

I am in the 5th stage of Anger-Denial-Bargaining-Depression-Acceptance cycle of this issue. Most of the country seems to be in stages 2 and 3.

[enron_by_the_sea]

Not directly related to the question asked:

The more I think about our health “insurance” scam, the more I see us moving towards something that George W. Bush has already created – HSA accounts with high deductible insurance.

I see these plans becoming more and more common in the workplace already and I fear that with the new healthcare “reform” passed, the trend towards them is only going to accelerate.

America will not accept any other option – true free market, completely govt. operated plan, Swiss model, French model, British model, Anarchy, Jungle Law ….

Like it or not – the future of our healthcare is HSA+HDHP and some bargaining with your favorite doctor.

I am in the 5th stage of Anger-Denial-Bargaining-Depression-Acceptance cycle of this issue. Most of the country seems to be in stages 2 and 3.

[enron_by_the_sea]

[1] for your situation, there are only 3 catagories of bonds that you should consider – Treasury, GNMA and CA GO. Or spread money in these 3 catagories. [If you don’t know about them google or wikipedia them.] Default risk in everything else is too high.

[2] Do not expect miracles in investing in above catagories. I would expect returns of 3% or less going forward.

[3] Do not buy individual bonds (transaction costs may be too high and less diversification.) Consider low cost bond funds from Vanguard for example. I do not recommend bond ETFs because most of them do not have sufficient trading volume so that their price can diverge from NAV by a lot during periods of market stress (e.g. flash crash)

[4] You CAN lose money by investing in bonds – either because of default or because interest rates rise. You have reduced default probability by staying with above catagories. You can estimate the sensitivity of bond fund to interest rates changes by looking at its “duration”. For example, If “duration” is 5 years then 1% rise in rates translates into 5% loss of principal. Intermediate bond funds will typically have duration of 3-7 years.

[3] If you can not take risk of losing 5-10% ( to earn a return of ~3% per year) do not invest in bonds. ( Or you can buy gold & gun – someone is bound to suggest this sooner or later 🙂 ….)

[enron_by_the_sea]

[1] for your situation, there are only 3 catagories of bonds that you should consider – Treasury, GNMA and CA GO. Or spread money in these 3 catagories. [If you don’t know about them google or wikipedia them.] Default risk in everything else is too high.

[2] Do not expect miracles in investing in above catagories. I would expect returns of 3% or less going forward.

[3] Do not buy individual bonds (transaction costs may be too high and less diversification.) Consider low cost bond funds from Vanguard for example. I do not recommend bond ETFs because most of them do not have sufficient trading volume so that their price can diverge from NAV by a lot during periods of market stress (e.g. flash crash)

[4] You CAN lose money by investing in bonds – either because of default or because interest rates rise. You have reduced default probability by staying with above catagories. You can estimate the sensitivity of bond fund to interest rates changes by looking at its “duration”. For example, If “duration” is 5 years then 1% rise in rates translates into 5% loss of principal. Intermediate bond funds will typically have duration of 3-7 years.

[3] If you can not take risk of losing 5-10% ( to earn a return of ~3% per year) do not invest in bonds. ( Or you can buy gold & gun – someone is bound to suggest this sooner or later 🙂 ….)

[enron_by_the_sea]

[1] for your situation, there are only 3 catagories of bonds that you should consider – Treasury, GNMA and CA GO. Or spread money in these 3 catagories. [If you don’t know about them google or wikipedia them.] Default risk in everything else is too high.

[2] Do not expect miracles in investing in above catagories. I would expect returns of 3% or less going forward.

[3] Do not buy individual bonds (transaction costs may be too high and less diversification.) Consider low cost bond funds from Vanguard for example. I do not recommend bond ETFs because most of them do not have sufficient trading volume so that their price can diverge from NAV by a lot during periods of market stress (e.g. flash crash)

[4] You CAN lose money by investing in bonds – either because of default or because interest rates rise. You have reduced default probability by staying with above catagories. You can estimate the sensitivity of bond fund to interest rates changes by looking at its “duration”. For example, If “duration” is 5 years then 1% rise in rates translates into 5% loss of principal. Intermediate bond funds will typically have duration of 3-7 years.

[3] If you can not take risk of losing 5-10% ( to earn a return of ~3% per year) do not invest in bonds. ( Or you can buy gold & gun – someone is bound to suggest this sooner or later 🙂 ….)

[enron_by_the_sea]

[1] for your situation, there are only 3 catagories of bonds that you should consider – Treasury, GNMA and CA GO. Or spread money in these 3 catagories. [If you don’t know about them google or wikipedia them.] Default risk in everything else is too high.

[2] Do not expect miracles in investing in above catagories. I would expect returns of 3% or less going forward.

[3] Do not buy individual bonds (transaction costs may be too high and less diversification.) Consider low cost bond funds from Vanguard for example. I do not recommend bond ETFs because most of them do not have sufficient trading volume so that their price can diverge from NAV by a lot during periods of market stress (e.g. flash crash)

[4] You CAN lose money by investing in bonds – either because of default or because interest rates rise. You have reduced default probability by staying with above catagories. You can estimate the sensitivity of bond fund to interest rates changes by looking at its “duration”. For example, If “duration” is 5 years then 1% rise in rates translates into 5% loss of principal. Intermediate bond funds will typically have duration of 3-7 years.

[3] If you can not take risk of losing 5-10% ( to earn a return of ~3% per year) do not invest in bonds. ( Or you can buy gold & gun – someone is bound to suggest this sooner or later 🙂 ….)

[enron_by_the_sea]

[1] for your situation, there are only 3 catagories of bonds that you should consider – Treasury, GNMA and CA GO. Or spread money in these 3 catagories. [If you don’t know about them google or wikipedia them.] Default risk in everything else is too high.

[2] Do not expect miracles in investing in above catagories. I would expect returns of 3% or less going forward.

[3] Do not buy individual bonds (transaction costs may be too high and less diversification.) Consider low cost bond funds from Vanguard for example. I do not recommend bond ETFs because most of them do not have sufficient trading volume so that their price can diverge from NAV by a lot during periods of market stress (e.g. flash crash)

[4] You CAN lose money by investing in bonds – either because of default or because interest rates rise. You have reduced default probability by staying with above catagories. You can estimate the sensitivity of bond fund to interest rates changes by looking at its “duration”. For example, If “duration” is 5 years then 1% rise in rates translates into 5% loss of principal. Intermediate bond funds will typically have duration of 3-7 years.

[3] If you can not take risk of losing 5-10% ( to earn a return of ~3% per year) do not invest in bonds. ( Or you can buy gold & gun – someone is bound to suggest this sooner or later 🙂 ….)

[enron_by_the_sea]

When I bought my house (no, I am not in 4S) the escrow company sent me about 200+ page report covering exciting topics such as earthquake fault zones, landslide inventory report, right to farm disclosure, naturally occuring asbestos zzzz…..

Somewhere in that, there was one page saying our Mello Roos for the CFD was expiring in 2016. This was bond issued in 1991 due to be paid off in 2016 per the escrow company.

Recently I digged deeper into this and found that the 1992 bonds mentioned above, were in fact refinanced in 1998. So the new bonds will be paid off in 2020 instead of 2016. — However my escrow company never really pointed that out to me.

So I can believe what the OP says. Disclosures on these things seem to be quite sloppy. (Maybe an opportunity for an enterprising hungry lawyer…)

[enron_by_the_sea]

When I bought my house (no, I am not in 4S) the escrow company sent me about 200+ page report covering exciting topics such as earthquake fault zones, landslide inventory report, right to farm disclosure, naturally occuring asbestos zzzz…..

Somewhere in that, there was one page saying our Mello Roos for the CFD was expiring in 2016. This was bond issued in 1991 due to be paid off in 2016 per the escrow company.

Recently I digged deeper into this and found that the 1992 bonds mentioned above, were in fact refinanced in 1998. So the new bonds will be paid off in 2020 instead of 2016. — However my escrow company never really pointed that out to me.

So I can believe what the OP says. Disclosures on these things seem to be quite sloppy. (Maybe an opportunity for an enterprising hungry lawyer…)

[enron_by_the_sea]

When I bought my house (no, I am not in 4S) the escrow company sent me about 200+ page report covering exciting topics such as earthquake fault zones, landslide inventory report, right to farm disclosure, naturally occuring asbestos zzzz…..

Somewhere in that, there was one page saying our Mello Roos for the CFD was expiring in 2016. This was bond issued in 1991 due to be paid off in 2016 per the escrow company.

Recently I digged deeper into this and found that the 1992 bonds mentioned above, were in fact refinanced in 1998. So the new bonds will be paid off in 2020 instead of 2016. — However my escrow company never really pointed that out to me.

So I can believe what the OP says. Disclosures on these things seem to be quite sloppy. (Maybe an opportunity for an enterprising hungry lawyer…)

[enron_by_the_sea]

When I bought my house (no, I am not in 4S) the escrow company sent me about 200+ page report covering exciting topics such as earthquake fault zones, landslide inventory report, right to farm disclosure, naturally occuring asbestos zzzz…..

Somewhere in that, there was one page saying our Mello Roos for the CFD was expiring in 2016. This was bond issued in 1991 due to be paid off in 2016 per the escrow company.

Recently I digged deeper into this and found that the 1992 bonds mentioned above, were in fact refinanced in 1998. So the new bonds will be paid off in 2020 instead of 2016. — However my escrow company never really pointed that out to me.

So I can believe what the OP says. Disclosures on these things seem to be quite sloppy. (Maybe an opportunity for an enterprising hungry lawyer…)

[enron_by_the_sea]

When I bought my house (no, I am not in 4S) the escrow company sent me about 200+ page report covering exciting topics such as earthquake fault zones, landslide inventory report, right to farm disclosure, naturally occuring asbestos zzzz…..

Somewhere in that, there was one page saying our Mello Roos for the CFD was expiring in 2016. This was bond issued in 1991 due to be paid off in 2016 per the escrow company.

Recently I digged deeper into this and found that the 1992 bonds mentioned above, were in fact refinanced in 1998. So the new bonds will be paid off in 2020 instead of 2016. — However my escrow company never really pointed that out to me.

So I can believe what the OP says. Disclosures on these things seem to be quite sloppy. (Maybe an opportunity for an enterprising hungry lawyer…)

[enron_by_the_sea]

[quote=bearishgurl]Why are there no term limits for members of Congress?? Any Piggs know?[/quote]
Because congress needs to pass that amendment to the constitution and they will never do that….

[enron_by_the_sea]

[quote=bearishgurl]Why are there no term limits for members of Congress?? Any Piggs know?[/quote]
Because congress needs to pass that amendment to the constitution and they will never do that….

[Author]

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