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Thoughts on DEEAX as bond portion of retirement account

Posted on 7/11/13 at 8:13 am
Posted by The Hamburglar
McDonaldland
Member since Jan 2005
3296 posts
Posted on 7/11/13 at 8:13 am
90 percent equities, 10 percent bond. The 10 percent is in DEEAX. Bonds are getting slammed now and looks like te hurting will continue for the foreseeable future. FYI I'm 31.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 7/11/13 at 8:35 am to
Not sure why one would want to hold an extended duration bond fund in a rising interest rate environment.
Posted by gatorsimz
cafe risque
Member since Feb 2009
8135 posts
Posted on 7/11/13 at 8:59 am to
quote:

Not sure why one would want to hold an extended duration bond fund in a rising interest rate environment.


This. If you want to go bond look international or go short/intermediate term high yield.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 7/11/13 at 9:08 am to
quote:

If you want to go bond look international or go short/intermediate term high yield.


And I would add bank loans/floating rate fund. Great yield and should see some appreciation.
Posted by whodatigahbait
Uptown
Member since Oct 2007
1748 posts
Posted on 7/11/13 at 9:18 am to
quote:

quote: If you want to go bond look international or go short/intermediate term high yield. And I would add bank loans/floating rate fund. Great yield and should see some appreciation


in addition to floating rate i'd look at some of the more unconstrained bonds funds that basically have no duration and go long or short interest rate. JP Strategic Income, John Hancock Strategic Income, and Goldman Sachs strategic income are all ones to look at.
Posted by The Hamburglar
McDonaldland
Member since Jan 2005
3296 posts
Posted on 7/11/13 at 1:37 pm to
My choices with my company's program are DEEAX, IPTSX, and AIAVX. What would you chose? As I'm only 31, would you just put this 10 percent into equities for a bit as I can bear the risk at this age?
Posted by matthew25
Member since Jun 2012
9425 posts
Posted on 7/11/13 at 9:39 pm to
The ING Pimco fund you quoted is minus 3.28 YTD.

At age 31, 51 or 71, in this market, get out of bonds. At your age, go to equities. At my age, I'm in cash and high paying dividend stocks.
Posted by The Hamburglar
McDonaldland
Member since Jan 2005
3296 posts
Posted on 7/11/13 at 10:17 pm to
Well, my personal investments are in equity mutual funds, with a good portion in Exxon and McDonald's; however, I don't have too much choice in the retirement funds, as you can see by my extensive choice in bond above. Guess ill spread it across a few other equity funds.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 7/12/13 at 6:08 am to
Of those three I would pick the Pimco, but I am not I would be in cash or maybe a balanced fund with that portion of my portfolio.
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