UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: Wradical Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35400  
Subject: Re: Schwab for Bonds Date: 11/28/2012 6:15 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
My 401(k) account is self-directed, and I am required to use Schwab for that. For stocks, they're good and cheap, IMHO.

For bonds, they can be frustrating, as to their search function. I wouldn't look to buy below B-, normally, but I could swear I've had CCC bonds pop up in searches.

If you do buy bonds there, the prices quoted in your portfolio holdings are NOT a price you could sell for, normally. And you generally have to call and sell on the phone, as opposed to buying. The prices quoted are for large blocks.

When buying and doing math checks I generally find that their YTM and YTC and YTW numbers are pretty good. More often than not, my initial calcs. were off. Or else there's something odd, like an odd call provision.

Yes, they mark up. They're in business to make money, too. I figure, I'm not a trader. I buy a bond and plan to hold to maturity. I don't buy unless the YTM or YTW is acceptable. If Schwab makes some money on the transaction too, well, I'd be surprised if they didn't.

Bill
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Falling Knives

Falling Pharma Prices
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement