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FIRST: NOTHING TO ADD/ALTER regarding 'Never-Never Land'. The pre-DC world shift of January, 2025 remains 'interesting' at this time! We're in a 'Never-Never Land' (events you never imagined) of potential large impacts upon various economic functions emanating from a central government in the coming months and years. What comes next for the investing world of bonds is not yet known or fully understood, except for those have a better guessing system than I. I can only watch and listen a little bit and let the numbers try to bring forth meaningful directions.My intention, at this time; is to present the data for the selected bond sectors, as listed; through the end of the year (2024). This 'end date' will take us through the U.S. elections period, pending actions/legislation dependent upon the election results, pending Federal Reserve actions and market movers trying to 'guess' future directions of the U.S. economy. As important during this period, are any number of global circumstances that may take a path that is not expected; and/or 'new' circumstances. In the 'cooking pot' we currently have the big ingredients of the middle east and also, how much damage Ukraine may inflict upon Russia and the response.
Vanguard explicitly states that in order to get its $3 fee for automatic investments, you must make at least two periodic investments. Though I have never tested this, experience has shown that Vanguard is fastidious in enforcing its rules. And it wasn't worth $6 for me to see for sure.All you got to do is try it. What is the chance you can't cancel anytime...about zero?
https://investor.vanguard.com/client-benefits/brokerage-fees-commissionsDollar-cost-averaging purchases: $100 (minimum 2 transactions, $3 per transaction)
The book is a good read, but the devil is in the details. How many Buffets do we have?
You may be focusing on the "long term" above. That doesn't rule out reliable shorter term performance. Perhaps it is worth examining what one expects out of a cash substitute. If it's absolute stability, then no bond funds will do. Otherwise, the field is open.Some investors – not wanting to put their short-term cash reserves at risk – may feel uneasy with any volatility within their short-duration bucket. ... we believe many investors are too cautious in this regard and could handle more volatility in their short-duration bucket in exchange for higher potential returns. Historically, despite occasional drawdowns, AAA CLOs have still ended up comfortably ahead of cash over the long term.
Not exactly what one would look for in a cash-ish fund. Yet it outperformed MMFs in 8 of the 10 years between 1991 and 2000, by as much as 5.4% and never underperformed by more than 0.5% (all from prospectus).[The fund invests] primarily in very short-term, corporate, and mortgage- and asset-backed bonds. The fund invests primarily in higher- and medium-quality bonds. To enhance its return potential, the fund also invests a portion of its assets in bonds that have longer maturities or are of lower-quality (high-yield or junk bonds), though it may not invest in bonds rated below BB. The managers focus upon high-yield bonds rated BB with positive or improving credit fundamentals. To help limit changes in share price, the fund's average maturity is usually one year or less. To a limited extent, the fund may also invest in foreign securities.
I think of USFR for this. It holds two years worth of what would be RMD's if I was required to take RMD'sStructured-CLOs ultra-ST ETFs such as inv-grade JAAA and junk JBBB will do better in strong credit markets.
Question is whether their extra returns are worth the extra risks vs regular ultra-ST ETFs (ICSH, JPST, USFR) ?
Many are new, but 2022 was a tough year for credit, so compare what happened then.
I would think of "cash" in this context as something to liquidate without hesitation to make other fund purchases or pay bills. (emphasis added)
The Millionaire Next Doorwealth is more likely the outcome of prudent spending and saving habits than high income or inherited wealth.
FIRST: NOTHING TO ADD/ALTER regarding 'Never-Never Land'. The pre-DC world shift of January, 2025 remains 'interesting' at this time! We're in a 'Never-Never Land' (events you never imagined) of potential large impacts upon various economic functions emanating from a central government in the coming months and years. What comes next for the investing world of bonds is not yet known or fully understood, except for those have a better guessing system than I. I can only watch and listen a little bit and let the numbers try to bring forth meaningful directions.My intention, at this time; is to present the data for the selected bond sectors, as listed; through the end of the year (2024). This 'end date' will take us through the U.S. elections period, pending actions/legislation dependent upon the election results, pending Federal Reserve actions and market movers trying to 'guess' future directions of the U.S. economy. As important during this period, are any number of global circumstances that may take a path that is not expected; and/or 'new' circumstances. In the 'cooking pot' we currently have the big ingredients of the middle east and also, how much damage Ukraine may inflict upon Russia and the response.
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