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Replace Bond Funds??
Are there higher funds to get a greater return on this 1/2 of my portfolio, or am I lacking one thing? I’m 73 years outdated and wish to see this half of my portfolio do higher in NAV and dividend or coupons or distributions or curiosity, no matter you wish to name it. In different phrases make higher cash. At age 73 I do not wish to undergo one other prolonged time period with this type of expertise. Any concepts can be appreciated. Thanks.
Re: Replace Bond Funds??
PGHunt24 wrote: ↑Sat Sep 14, 2024 3:30 pm
Now that NAV’s are beginning to heal and distributions are beginning to settle down with Bond Funds, I used to be in search of recommendation on whether or not I ought to substitute my Bond Funds with one thing much less delicate to rates of interest with a greater return (if that exists). 1/2 of my portfolio is in 3 funds, BNDX, VFIDX and VFSUX. That is all certified cash totaling $500 Okay. I’ve owned these funds for nearly 9 years and are nearly at breakeve from what I paid for them. Over this time interval, the distributions have been comparatively low, aside from current occasions. Since inception, these funds have yielded 2.35, 4.66 and three.07 % respectively.Are there higher funds to get a greater return on this 1/2 of my portfolio, or am I lacking one thing? I’m 73 years outdated and wish to see this half of my portfolio do higher in NAV and dividend or coupons or distributions or curiosity, no matter you wish to name it. In different phrases make higher cash. At age 73 I do not wish to undergo one other prolonged time period with this type of expertise. Any concepts can be appreciated. Thanks.
Rates of interest had been at 2.25% or under for 14 years (2008-2022.)
Bonds cannot do significantly better than that.
You’ll be able to’t chase yield if you wish to stay secure.
Re: Replace Bond Funds??
One different can be to place 1/3 of your present bond allocation in a TIPS ladder, 1/3 in a SPIA and 1/3 in a complete U.S. bond fund.
Re: Replace Bond Funds??
A) Are you a bond supervisor by career? If not, why do you suppose you are able to do higher?
B) If you happen to imagine somebody can actively handle their bonds and get a greater return, why keep at passive indexing?
C) 30% of my portfolio is within the Wellington Fund. It’s actively managed by Wellington Fund administration with 0.17% expense ratio.
D) 50% of my portfolio is within the 3 funds portfolio.
It is vitally easy.
Do you or do you not imagine in passive indexing?
KlangFool
30% VWENX | 16% VFWAX/VTIAX | 14.5% VTSAX | 19.5% VBTLX | 10% VSIAX/VTMSX/VSMAX | 10% VSIGX| 30% Wellington 50% 3-funds 20% Mini-Larry
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Re: Replace Bond Funds??
PGHunt24 wrote: ↑Sat Sep 14, 2024 3:30 pm
Now that NAV’s are beginning to heal and distributions are beginning to settle down with Bond Funds, I used to be in search of recommendation on whether or not I ought to substitute my Bond Funds with one thing much less delicate to rates of interest with a greater return (if that exists). 1/2 of my portfolio is in 3 funds, BNDX, VFIDX and VFSUX. That is all certified cash totaling $500 Okay. I’ve owned these funds for nearly 9 years and are nearly at breakeve from what I paid for them. Over this time interval, the distributions have been comparatively low, aside from current occasions. Since inception, these funds have yielded 2.35, 4.66 and three.07 % respectively.Are there higher funds to get a greater return on this 1/2 of my portfolio, or am I lacking one thing? I’m 73 years outdated and wish to see this half of my portfolio do higher in NAV and dividend or coupons or distributions or curiosity, no matter you wish to name it. In different phrases make higher cash. At age 73 I do not wish to undergo one other prolonged time period with this type of expertise. Any concepts can be appreciated. Thanks.
to op:
1
would you might have the “danger tolerance” and “sleep issue” to vary your allocation from 50/50 to 70/30??
2
Nevertheless, notice that your portfolio can have extra “motion” with the elevated volatility of a 70/30 allocation, whereas growing returns on the fairness aspect.
3
You’ll be able to concurrently allocate a portion of your portfolio and “anchor it” with this:
Constancy Fastened Price chart. Present.
https://fixedincome.fidelity.com/ftgw/f … hest-yield
and/or CD Ladders (new situation), Treasury Ladders (new situation, not funds).
j 
Bogleheads Wiki: Every thing You Must Know
Re: Replace Bond Funds??
PGHunt24 wrote: ↑Sat Sep 14, 2024 3:30 pm
Now that NAV’s are beginning to heal and distributions are beginning to settle down with Bond Funds, I used to be in search of recommendation on whether or not I ought to substitute my Bond Funds with one thing much less delicate to rates of interest with a greater return (if that exists). 1/2 of my portfolio is in 3 funds, BNDX, VFIDX and VFSUX. That is all certified cash totaling $500 Okay. I’ve owned these funds for nearly 9 years and are nearly at breakeve from what I paid for them. Over this time interval, the distributions have been comparatively low, aside from current occasions. Since inception, these funds have yielded 2.35, 4.66 and three.07 % respectively.Are there higher funds to get a greater return on this 1/2 of my portfolio, or am I lacking one thing? I’m 73 years outdated and wish to see this half of my portfolio do higher in NAV and dividend or coupons or distributions or curiosity, no matter you wish to name it. In different phrases make higher cash. At age 73 I do not wish to undergo one other prolonged time period with this type of expertise. Any concepts can be appreciated. Thanks.
A bond fund paying 4% is fairly superior, when you ask me. How a few TIPS ladder?
Crom laughs at your 4 Winds
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Re: Replace Bond Funds??
I’m retired as properly, however a bit youthful. I maintain a number of bond funds myself and don’t care what the NAV is doing as I exploit them for revenue and can maintain them endlessly. Some posters have talked about different alternate options however as charges decline so with their yields. I’d give it a while.
However, if you’re involved about rising the general portfolio, then that might be a distinct plan of action by altering your asset allocation.
Re: Replace Bond Funds??
KlangFool wrote: ↑Sat Sep 14, 2024 3:35 pm
OP,A) Are you a bond supervisor by career? If not, why do you suppose you are able to do higher?
B) If you happen to imagine somebody can actively handle their bonds and get a greater return, why keep at passive indexing?
C) 30% of my portfolio is within the Wellington Fund. It’s actively managed by Wellington Fund administration with 0.17% expense ratio.
D) 50% of my portfolio is within the 3 funds portfolio.
It is vitally easy.
Do you or do you not imagine in passive indexing?
KlangFool
I want Wellington had a separate bond fund.
I’ve used Dodge and Cox
Re: Replace Bond Funds??
quattro73 wrote: ↑Sat Sep 14, 2024 6:00 pmKlangFool wrote: ↑Sat Sep 14, 2024 3:35 pm
OP,A) Are you a bond supervisor by career? If not, why do you suppose you are able to do higher?
B) If you happen to imagine somebody can actively handle their bonds and get a greater return, why keep at passive indexing?
C) 30% of my portfolio is within the Wellington Fund. It’s actively managed by Wellington Fund administration with 0.17% expense ratio.
D) 50% of my portfolio is within the 3 funds portfolio.
It is vitally easy.
Do you or do you not imagine in passive indexing?
KlangFool
I want Wellington had a separate bond fund.
I’ve used Dodge and Cox
Wellesley fund is shut sufficient.
KlangFool
30% VWENX | 16% VFWAX/VTIAX | 14.5% VTSAX | 19.5% VBTLX | 10% VSIAX/VTMSX/VSMAX | 10% VSIGX| 30% Wellington 50% 3-funds 20% Mini-Larry
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Re: Replace Bond Funds??
If you wish to keep away from sudden loss, maybe you might combine in some VTIP (brief time period TIPs) with the usual whole bond market. However the futures are exhausting to forecast appropriately.
Previous consequence doesn’t predict future efficiency. Talked about investments could lose cash. Contents are offered “AS IS” and any implied suitability for a selected function are disclaimed.
Re: Replace Bond Funds??
Hacksawdave wrote: ↑Sat Sep 14, 2024 5:45 pm
Within the 9-year accumulation span, almost half that point was spent when the fed funds price was at zero and treasuries had been at a file low yield, then in 2022 charges and yields began to rise. This could clarify why the double whammy you see. Nevertheless, the distribution per share has been on the rise for all bond funds within the final couple of years to make up for the drop within the NAV, and NAVs have been on the rise as of late.I’m retired as properly, however a bit youthful. I maintain a number of bond funds myself and don’t care what the NAV is doing as I exploit them for revenue and can maintain them endlessly. Some posters have talked about different alternate options however as charges decline so with their yields. I’d give it a while.
However, if you’re involved about rising the general portfolio, then that might be a distinct plan of action by altering your asset allocation.
Thanks in your response.
