- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
1
Posted on 2/6/24 at 5:32 am to Big Scrub TX
If you want some exposure to a bond fund like JAAA would you say that a Roth IRA is a preferable vehicle than a regular brokerage account because of the tax implications on the dividends? That's where I've generally put REITs and it seems like the same logic would apply here?
This post was edited on 2/6/24 at 5:37 am
Posted on 2/6/24 at 6:17 am to beaverfever
quote:All else being equal, don’t hold REITs in your Roth. Hold them in your brokerage account.
That's where I've generally put REITs and it seems like the same logic would apply here?
I realize sheltering the dividends seems attractive, but REIT dividends are tax favorable already. Put your higher upside stocks in your Roth. Depending on your overall asset allocation, I’d own very little in bonds in my Roth. Thats your best growth account.
Posted on 2/6/24 at 6:56 am to Roscoe14
When interest rates go down, bonds will appreciate. The risk is the reverse happen when rates go up. But in todays environment the risk reward is in your favor.
If you are buying bonds themselves it does give you more risk since you would be managing the duration (sensitivity to interest rates) and the time period to maturity, so you could conceivable see lots of up movement of rates over time.
If you are buying bonds themselves it does give you more risk since you would be managing the duration (sensitivity to interest rates) and the time period to maturity, so you could conceivable see lots of up movement of rates over time.
Posted on 2/6/24 at 8:09 am to dirtsandwich
quote:
(early to mid-60s?).
I wish. And I am not going all fixed income. Right now the portfolio is at around 11% FI. Lot of room to increase that.
Posted on 2/6/24 at 8:56 am to beaverfever
I use those funds at times but mostly I buy ind bonds. I don't like the principal fluctuation in funds and etfs people dump them on bad news that increases the downside.
Posted on 2/6/24 at 9:51 am to slackster
quote:
by the way, I appreciate your USFR thread. I began using it around a year ago for quite a few clients. I had no familiarity with the floating rate treasury market until your thread. Researched it and rich I knew about it in 2022 instead.
Same here. Right after he first mentioned it, I researched USFR and began throwing free cash from options profits into the fund. It’s proven to be an excellent, liquid option for cash, and that rate premium kicker is very nice.
Posted on 2/6/24 at 10:00 am to bovine1
quote:It depends on what funds and etfs you are talking about, but don't kid yourself about bonds. You might not see any reported movements on the tape, but they aren't very liquid usually. During the covid spike down, munis and treasuries traded like penny stocks!
I don't like the principal fluctuation in funds and etfs people dump them on bad news that increases the downside.
Posted on 2/6/24 at 10:54 am to Big Scrub TX
I agree Big Scrub but I stay under 5 yrs and ladder ind issues. I also have other liquid funds so I don't have to sell into a panic. I do use ce funds if I go longer. I buy at more than average discounts and neg z scores only though. I also like to use cefs and etfs in bank loans like BGT and SRLN. Also EIC and bdcs like PSEC.
Posted on 2/6/24 at 2:08 pm to bovine1
quote:SOOO illiquid - but I love the collateral. If you like that, then take a look at ECC. That's my biggest holding across all accounts.
Also EIC
Posted on 2/6/24 at 2:43 pm to Big Scrub TX
Thanks I'll check it out.
Posted on 2/6/24 at 8:44 pm to meansonny
quote:
As for bank CDs, I don't quite see the liquidity problem.
Maybe I'm not experienced enough with all of the CD options.
But in the past, early forfeiture of a CD penalizes you 3 months interest.
Does the fact that there is a penalty at all suck? Sure.
But calculate out what 3 months interest is and let me know how much that will sting based on needing to break the contract. My guess is that it would feel like pennies.
Yep. I just entered that market. Penalty isn't bad at all, and that's assuming I'll need to tap the CD which is highly unlikely.
Posted on 2/6/24 at 11:39 pm to Bestbank Tiger
quote:But what's the benefit you're getting for locking up your money?
Yep. I just entered that market. Penalty isn't bad at all, and that's assuming I'll need to tap the CD which is highly unlikely.
Posted on 2/7/24 at 6:41 pm to Big Scrub TX
quote:
But what's the benefit you're getting for locking up your money?
Interest payments.
Posted on 2/7/24 at 11:20 pm to Bestbank Tiger
quote:How much in excess of the non-lock amount?
Interest payments.
Posted on 2/8/24 at 1:38 pm to Big Scrub TX
Not enough
Posted on 2/8/24 at 7:00 pm to meansonny
quote:
I like muni bonds.
He said it’s a retirement account. You can’t put muni bonds in retirement accounts!
Posted on 2/8/24 at 9:04 pm to Pendulum
quote:My entire point.
Not enough
Posted on 2/8/24 at 9:37 pm to Jag_Warrior
Fixed income newb here. Can someone explain the differences between USFR and VMFXX? I have a lot of cash in VMFXX as opposed to my banks FDIC insured money market account because of it’s higher yield (5.3% vs 4.3%).
Posted on 2/8/24 at 9:53 pm to LSUtiger89
quote:
He said it’s a retirement account. You can’t put muni bonds in retirement accounts!
You can, but why would you?
Page 2 of 3
Popular
Back to top
Follow TigerDroppings for LSU Football News