Where is your fixed income invested?

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carolinaman
Posts: 4381
Joined: Wed Dec 28, 2011 9:56 am
Location: North Carolina

Re: Where is your fixed income invested?

Post by carolinaman »

AA 36/64 right now. Half of FI is in CDs, balance in intermediate bond mutual funds and savings.
atdharris
Posts: 646
Joined: Wed Jan 02, 2019 3:18 pm

Re: Where is your fixed income invested?

Post by atdharris »

Long-term treasuries. No reason to hold short term treasuries right now. The rest of my cash is in a CD and HYSA
dru808
Posts: 1042
Joined: Sat Oct 15, 2011 2:42 pm
Location: mid pac

Re: Where is your fixed income invested?

Post by dru808 »

hudson wrote: Wed Jul 22, 2020 4:06 am
dru808 wrote: Tue Jul 21, 2020 10:27 pm 80%+in GOVT, ishares US treasury bond fund, the rest in VBTLX.
dru808,
I'm sure that you've compared GOVT and Vanguard's version VGIT.
They are relatively close. Why GOVT over VGIT?
Honestly, I think of it as the total bond of .gov bond funds, I know it would be beneficial price wise to go with vgit. I have no good reason.
63% US equity | 27% INTL equity | 10% US long bond index
qwertyjazz
Posts: 1262
Joined: Tue Feb 23, 2016 4:24 am

Re: Where is your fixed income invested?

Post by qwertyjazz »

atdharris wrote: Wed Jul 22, 2020 10:57 am Long-term treasuries. No reason to hold short term treasuries right now. The rest of my cash is in a CD and HYSA
Why no reason for short term? Yield? I am trying to figure out my own high short term account and curious as to your logic
Thank you
G.E. Box "All models are wrong, but some are useful."
atdharris
Posts: 646
Joined: Wed Jan 02, 2019 3:18 pm

Re: Where is your fixed income invested?

Post by atdharris »

qwertyjazz wrote: Wed Jul 22, 2020 11:13 am
atdharris wrote: Wed Jul 22, 2020 10:57 am Long-term treasuries. No reason to hold short term treasuries right now. The rest of my cash is in a CD and HYSA
Why no reason for short term? Yield? I am trying to figure out my own high short term account and curious as to your logic
Thank you
No reason for short-term over a CD or HYSA because it pays 0% interest. The cash I don't have in LTT I just have sitting in my brokerage account making 0.03% or whatever it pays.
hudson
Posts: 3370
Joined: Fri Apr 06, 2007 9:15 am

Re: Where is your fixed income invested?

Post by hudson »

dru808 wrote: Wed Jul 22, 2020 11:12 am
hudson wrote: Wed Jul 22, 2020 4:06 am
dru808 wrote: Tue Jul 21, 2020 10:27 pm 80%+in GOVT, ishares US treasury bond fund, the rest in VBTLX.
dru808,
I'm sure that you've compared GOVT and Vanguard's version VGIT.
They are relatively close. Why GOVT over VGIT?
Honestly, I think of it as the total bond of .gov bond funds, I know it would be beneficial price wise to go with vgit. I have no good reason.
Thanks dru808!
I don't see much difference. At the $1M level VGIT might payout a few hundred dollars more due to its lower expense ratio. Other factors might negate that.
qwertyjazz
Posts: 1262
Joined: Tue Feb 23, 2016 4:24 am

Re: Where is your fixed income invested?

Post by qwertyjazz »

atdharris wrote: Wed Jul 22, 2020 11:36 am
qwertyjazz wrote: Wed Jul 22, 2020 11:13 am
atdharris wrote: Wed Jul 22, 2020 10:57 am Long-term treasuries. No reason to hold short term treasuries right now. The rest of my cash is in a CD and HYSA
Why no reason for short term? Yield? I am trying to figure out my own high short term account and curious as to your logic
Thank you
No reason for short-term over a CD or HYSA because it pays 0% interest. The cash I don't have in LTT I just have sitting in my brokerage account making 0.03% or whatever it pays.
Thank you
G.E. Box "All models are wrong, but some are useful."
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midareff
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Joined: Mon Nov 29, 2010 10:43 am
Location: Biscayne Bay, South Florida

Re: Where is your fixed income invested?

Post by midareff »

Intermediate and Long Term Munis in taxable and ST and IT Corporate Index in IRA and CD's at bank.
RetiredCSProf
Posts: 523
Joined: Tue Feb 28, 2017 4:59 pm

Re: Where is your fixed income invested?

Post by RetiredCSProf »

In taxable, I hold cash plus about $12K in EE US savings bonds. In Roth, I hold a small amount in core MM. In tax-deferred, I hold enough in MM to cover next year's RMDs/QCDs.

On 20 Feb 2020, I held $120K each in bond funds at TRowe and Fido rollover IRAs.
On 20 Mar 2020, my TRowe bond funds had dropped 9% to $108K, while my Fido bond funds had dropped 15% to $101K
By 20 June 2020, my TRowe bond funds had recovered back up to $120K, while my Fido bond funds were still trailing at $114K

I am currently rebalancing among my bond investments in my TRowe and Fido rollover IRAs. Except for one ETF at Fido, all are MFs, with dividends reinvested. I don't know that the proportions would be helpful (you did not ask that question), but here's a list of the bond funds I hold:

PIMCO multi-sector bond fund (PONAX) (Fido waives the load fee.)
Thompson Short-Term (THOPX)
Fido Floating Rate -- short term (FFHRX)
Fido High Yield (FAGIX)
Fido Aggregate Bond ETF (FBND)
Fido US Treas Intermediate Index (FUAMX)
Fido Sustainability Bond Index (FNDSX)
TRowe New Income -- intermediate core (PRCIX)
TRowe Short Term (PRWBX)
TRowe Limited Duration TIPS (TRBFX)
TRowe High Yield (PRHYX)
TRowe Total Return -- intermediate core-plus (PTTFX)
TRowe International Bond (RPIBX)
TRowe Multi-Sector Global Bond (PRSNX)
TRowe Floating Rate (PRFRX)
TRowe US Treasury Intermediate (PRTIX)

Note that not all "short-term" bond funds are alike. For example, between Feb 20 and Mar 20, my investment in PRWBX dropped 3% while THOPX dropped 9%.
Broken Man 1999
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Location: West coast of Florida, inland on high ground!

Re: Where is your fixed income invested?

Post by Broken Man 1999 »

Bonds are 45.3% of total portfolio.
Holdings are percentages of total portfolio.

Series I Savings Bonds: 6.5% (haven't revalued since May, 2020)
Vanguard Total Bond Market Index Fund: 6.2% (Vanguard VA)
Vanguard Short-term Treasury Index Fund: 12.2% (TIRAs)
Vanguard Intermediate-term Treasury Index Fund: 20.4% (TIRAs)

We hold no bonds in our Roth IRAs, only equities.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go. " -Mark Twain
Dnymetssince63
Posts: 8
Joined: Fri Nov 13, 2015 6:03 pm

Re: Where is your fixed income invested?

Post by Dnymetssince63 »

Retired and drawing off fixed income from TSP G fund.
N.Y.Cab
Posts: 61
Joined: Wed Feb 07, 2018 8:46 pm

Re: Where is your fixed income invested?

Post by N.Y.Cab »

Most of my fixed income used to be in the total bond index. This month I merged that with 1.5x total stock index into the balanced index. My asset allocation is around 75:25 but will glide down with new money going to balanced index fund.
Last edited by N.Y.Cab on Thu Jul 23, 2020 4:44 am, edited 1 time in total.
protagonist
Posts: 6762
Joined: Sun Dec 26, 2010 12:47 pm

Re: Where is your fixed income invested?

Post by protagonist »

corn18 wrote: Tue Jul 21, 2020 10:08 am

So where does everyone have your fixed income allocation?
Mostly CDs plus my limit in I-bonds every year. I also have a small allocation in the intermediate term bond fund included in FFNOX (a fund I have held for many years and resist selling for tax reasons).

I am facing a dilemma this year since within the next 6-12 months many of my CDs will mature. If I cannot find promotional CD rates that are much better than what I can get in my online bank account (which is the case now), I may, for the first time in many years, just keep my money in cash, which will give me the liquidity to rapidly jump into anything more desirable if and when it comes up.

The comforting note is that 1% nominal today is probably somewhere around 1% REAL, which isn't all that bad if your main goal for fixed income investments is wealth preservation. If you got 4% in times of 3% inflation you likely wouldn't complain much (plus you would be paying more tax on interest).
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Teriyaki
Posts: 68
Joined: Sat Feb 23, 2019 9:08 am
Location: Finland

Re: Where is your fixed income invested?

Post by Teriyaki »

High-yield savings accounts. Wouldn't even think about buying bonds at these rates.
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Hector
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Re: Where is your fixed income invested?

Post by Hector »

Individual short term (<=5 years) Treasury notes.
bluelight
Posts: 348
Joined: Sun Jul 10, 2011 12:08 am

Re: Where is your fixed income invested?

Post by bluelight »

Taxable is in intermediate and long term muni funds, and credit union savings.

IRAs are in Vanguard Total Bond and Fidelity US Bond funds.
mickroark
Posts: 121
Joined: Wed Jan 13, 2016 10:35 am

Re: Where is your fixed income invested?

Post by mickroark »

Deferred fixed annuity, Income not taxed unless needed. Getting 3% currently. :arrow:
Hubris
Posts: 81
Joined: Thu Sep 15, 2016 10:55 pm

Re: Where is your fixed income invested?

Post by Hubris »

IRA’s: Vanguard Total Bond ETF (BND)
Taxable: Vanguard Intermediate-Term Treasury (VSIGX), iShares US Treasury Bond ETF (GOVT), Vanguard Municipal Money Market (VMSXX), High Yield Savings
FreddieG
Posts: 157
Joined: Mon Sep 15, 2014 4:42 pm

Re: Where is your fixed income invested?

Post by FreddieG »

I am retired with a defined benefit pension. My 401k is 100% invested in Vanguard Wellington.

No regrets. I can stomach volatility.
honduranhurricane
Posts: 158
Joined: Tue Oct 18, 2016 10:18 pm
Location: boston, ma

Re: Where is your fixed income invested?

Post by honduranhurricane »

Cash and loan fund
rockAction
Posts: 63
Joined: Wed Apr 08, 2020 4:56 pm

Re: Where is your fixed income invested?

Post by rockAction »

Retired, 44 yrs old. 35/65 AA.

30% Total Bond and International Bond (VBTLX, VTABX)
30% Munis (VMLUX, VWIUX, VWLUX)
20% TIPS/I Bonds (VTIP, VIPSX, LTPZ)
20% Life Insurance Cash Value, HY Savings, and Vanguard Fed Money Market (VMFXX)

Weighted primarily towards Short and Intermediate Term.
student
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Joined: Fri Apr 03, 2015 6:58 am

Re: Where is your fixed income invested?

Post by student »

Almost exclusively with TIAA Traditional (which I view as stable value with current interest rate about 3%).
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