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junk bond funds could be used as lifetime annuity...plus couple of reads
I am probably contradicting something I uttered here yesterday or the day before, but using a junk bond fund in such a manner holds a certain sort of logic which feels attractive. In fact, without deciding to do so on the basis on which that article is based, my EM Bond fund has been growing steadily and functioning hypothetically the same way the HY bond fund operates in the scenario described. I say "hypothetically" because I'm still reinvesting all dividends. I don't yet need the income. Interesting...
hi Max good comment. I bought bunch of privatized individual bonds @ E.jones & zions direct, every month a few hundreds/thousands coming in. does not matter if market goes up or down. I use these new dividends to buy even more bonds and growing it steadily. cannot beat these deals I got two bonds that have mature - continental airlines and a restaurant chain el poco loco in S. Cali, cannot complaint here.
The income from junk funds sounds good, but you have to reinvest 2% per year just to keep a stable nav. So if the fund yields 7% you are really receiving 5%. This has to be compared with dividend paying equities where it is possible to get ~5% yield with the possibility of dividend increases and capital appreciation. Same rule applies, you have to live off distributions and avoid selling assets.
"What smart investors should do." Motley Fool. Just looked at it. They might be right, but there's not much in there for anyone who isn't searching for their very first article, to direct them. It's for those who are not yet even NOVICES.
from market watch - couple of interesting reads marketwatch.com New gold bugs are young and restless Stock experts' tips can puncture your portfolio Look to Asia-Pacific for investment opportunities. Legg Mason's Miller fades away.
Comments
good comment. I bought bunch of privatized individual bonds @ E.jones & zions direct, every month a few hundreds/thousands coming in. does not matter if market goes up or down. I use these new dividends to buy even more bonds and growing it steadily. cannot beat these deals
I got two bonds that have mature - continental airlines and a restaurant chain el poco loco in S. Cali, cannot complaint here.
but these articles may make you to take more maalox at night
http://www.cnn.com/2011/11/17/us/michigan-detroit-budget-problems/index.html
signs of EU woes stress world market
http://www.reuters.com/article/2011/11/17/markets-global-idUSL3E7MH01H20111117
How to Play Agricultural Commodities
http://www.cnbc.com/id/44929223
muni best inflows
http://www.reuters.com/article/2011/11/16/investing-fundflows-ici-idUSN1E7AF1IZ20111116
http://www.forbes.com/sites/chrisbarth/2011/11/16/the-forbes-list-of-etf-best-buys/
ALSO - COULD BE BEST READS/GUIDE
http://www.forbes.com/special-report/2011/2012-investment-guide.html
trophies in the hunt for HY
http://www.moneyshow.com/investing/article/1/tptp111711-25412/2-Trophies-in-the-Hunt-for-High-Yields/
what smart investors should do
http://www.fool.com/investing/general/2011/11/16/what-the-smart-investors-are-up-to-.aspx
bill miller exits
http://www.cnbc.com/id/45341555
http://news.investors.com/Article/591876/201111161737/Allianz-AGIC-Growth-Taps-Tech.htm?src=3MC591876
are target fund right for you
http://www.investinganswers.com/investment-ideas/mutual-funds-etfs/are-target-date-funds-right-you-3838
highest yield muni funds
http://community.nasdaq.com/News/2011-11/top-5-highest-yielding-municipal-bond-funds-highest-yielding-zacks-1-ranked-funds.aspx?storyid=103317
4 tips to help you w/ annunities
http://money.usnews.com/money/blogs/the-smarter-mutual-fund-investor/2011/11/17/4-tips-to-help-you-with-annuities
marketwatch.com
New gold bugs are young and restless
Stock experts' tips can puncture your portfolio
Look to Asia-Pacific for investment opportunities.
Legg Mason's Miller fades away.
also
http://www.businessweek.com/news/2011-11-15/u-s-muni-bonds-safe-from-default-risk-kroll-study-says.html