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Re: Bond fund investing- need advice

Can anyone explain to me why the nav is dropping when the interest rates aren't rising to date. All of my bond money, half of my portfolio is in this fund. I was ok with it, but I am now "fixated" again on the dropping nav and wondering how much it could potentially drop. Not a savvy bond ...
by martlou
Tue Jun 25, 2013 11:39 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond fund investing- need advice
Replies: 26
Views: 2454

Re: Bond fund investing- need advice

I am surprised you are fixated on the $11.20 price you paid. Since you purchased this fund it has paid out $0.07824 in distributions and will pay today another ~$0.022 dividend, for about a $0.10 total. That really means you bought for $11.10. It will probably have a NAV today of $11.00 even, so yo...
by martlou
Thu Jan 31, 2013 6:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond fund investing- need advice
Replies: 26
Views: 2454

Re: Bond fund investing- need advice

This is no means a catastrophe - so don't panic. One lesson to learn from it is to fully understand something before you invest in it - regardless of what investment that is. There is nothing wrong with sitting in cash for a long time while you understand your options. I am not saying the intermedi...
by martlou
Thu Jan 31, 2013 5:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond fund investing- need advice
Replies: 26
Views: 2454

Re: Bond fund investing- need advice

Apparently, I bought this fund (VBTLX) at a bad time. I was advised to put all the bond money into this one fund at $11.20 nav price. I realize it has only been a month but I don't see how the dividends are going to compensate for the loss with the interest rates so low. I am not a savvy bond invest...
by martlou
Thu Jan 31, 2013 2:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond fund investing- need advice
Replies: 26
Views: 2454

Re: Bond fund investing- need advice

Apparently, I bought this fund at a bad time at as advised. $11.20 nav price.
by martlou
Thu Jan 31, 2013 2:19 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond fund investing- need advice
Replies: 26
Views: 2454

Re: Bond fund investing- need advice

how is the bond fund going to be better than leaving the money in a money market? While the NAV of the TBM is essentially flat after one year, each share paid 12 months of dividends totaling $0.36 cents. The Prime money market paid 12 months of dividends totaling $0.00036. I don't even know how to ...
by martlou
Tue Jan 08, 2013 11:47 am
 
Forum: Investing - Help with Personal Investments
Topic: Bond fund investing- need advice
Replies: 26
Views: 2454

Re: Bond fund investing- need advice

I am ok with the fluctuation as long as the fund eventually has better results than the money market. I don't need the money for another 6 years. Thanks for the post!
by martlou
Tue Jan 08, 2013 10:01 am
 
Forum: Investing - Help with Personal Investments
Topic: Bond fund investing- need advice
Replies: 26
Views: 2454

Re: Bond fund investing- need advice

Thank you for clarifying! So if I understand correctly, on a 5.2 duration, the price would fall 5% approximately with 1% yield increase, and it could take about 1.5 years to be even again if the yield increased from 1.7 to 2.7% ? With this explanation, how is the bond fund going to be better than le...
by martlou
Tue Jan 08, 2013 9:38 am
 
Forum: Investing - Help with Personal Investments
Topic: Bond fund investing- need advice
Replies: 26
Views: 2454

Re: Bond fund investing- need advice

Thank you! I appreciate your input!
by martlou
Mon Jan 07, 2013 2:20 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond fund investing- need advice
Replies: 26
Views: 2454

Re: Bond fund investing- need advice

Thank you for your post! I think my discomfort comes from having so much money in one fund plus my lack of experience with bond funds fluctuating over time. I don't need to move it for liquidity so I will hang in there. It looks like I bought the fund at the high though!
by martlou
Mon Jan 07, 2013 1:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Bond fund investing- need advice
Replies: 26
Views: 2454

Bond fund investing- need advice

I was advised by an investment planner that to allocate 50% of my portfolio into bonds, I should move a substantial amount from the money market into VBTLX. I bought this at a NAV of $11.20 and didn't dollar cost average, so I am down. Forgive my lack of knowledge here. I just haven't had much money...
by martlou
Mon Jan 07, 2013 11:31 am
 
Forum: Investing - Help with Personal Investments
Topic: Bond fund investing- need advice
Replies: 26
Views: 2454

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