UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Next Thread
Author: azhub Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: Bond investing Date: 12/22/1999 11:21 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
My wife recently retired and received a lump sum along with her 401k. We want to protect 40% to 50% of the IRA money by investing in Bonds. I am a novice and recently realized that you can loose principal when investing in bond mutual funds. What are all my choices in investing in different levels of safty in interest bearing investment vehicles. My wife is not going to need this money for a least 2 years. Any help would be greatly appreciated.

Thanks,
AzHub
Print the post Back To Top
Author: mphipps Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 16800 of 75383
Subject: Re: Bond investing Date: 12/22/1999 11:44 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
First of all you don't necessarily protect your money by investing in bonds. What you protect is your yield based on interest.
As a matter of fact in a bond mutual fund you can loose principle. But if you invest in the following you will not loose principle if you hold to maturity.
Money Market Mutual fund
T-Bills,
Treasury notes.
I would not invest any lump sum money today in bonds. Interest rates are on the rise.
I would take the money and invest in one of the three above it you are worried about capital preservation and not growth.

Print the post Back To Top
Author: BluesH One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 16810 of 75383
Subject: Re: Bond investing Date: 12/23/1999 1:29 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
azhub wrote:
My wife recently retired and received a lump sum along with her 401k. We want to protect 40% to 50% of the IRA money by investing in Bonds. I am a novice and recently realized that you can loose principal when investing in bond mutual funds. What are all my choices in investing in different levels of safty in interest bearing investment vehicles. My wife is not going to need this money for a least 2 years. Any help would be greatly appreciated.

I'm planning to retire next year and have had the same question. A good start is to look at the "Bonds & Fixed Income Investments" board at http://boards.fool.com/Messages.asp?id=1030062000132000

Bob H, aka Blues


Print the post Back To Top
Author: markr33 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 16969 of 75383
Subject: Re: Bond investing Date: 12/28/1999 10:58 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
First of all you don't necessarily protect your money by investing in bonds. What you protect is your yield based on interest.
As a matter of fact in a bond mutual fund you can loose principle. But if you invest in the following you will not loose principle if you hold to maturity.
Money Market Mutual fund
T-Bills,
Treasury notes.
I would not invest any lump sum money today in bonds. Interest rates are on the rise.


How do you know that interest rates are going to rise ? If you are so sure, why don't you purchase options on the interest rate futures and retire soon after they rise ? :-)



Print the post Back To Top
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Next Thread
Advertisement