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Derf said:@Bobpa: Sempx cumulative YTD looks to be better than Iofax, 3.64 vs (-.34). ER is also less. Derf
@Bobpa: Sempx cumulative YTD looks to be better than Iofax, 3.64 vs (-.34). ER is also less. Derf
Derf said:@ Junkster: I stand corrected. Cumulative 1 yr. IOFAX (-.38) That included sales charge. Derf
@ Junkster: I stand corrected. Cumulative 1 yr. IOFAX (-.38) That included sales charge. Derf
wxman123 said:What would be the case for investing in SEMPX when you have IOFAX?
What would be the case for investing in SEMPX when you have IOFAX?
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Edit. Thanks Mona.
I'll tell you I cashed in two 401-k's toward the 3/rd quarter of 2017. I was a little blue as market continued to climb, then retreated & then hit a new high lately. Currently sitting in MM at Vanguard awaiting a correction.
As I've said before, different strokes for different folks.
Just my personal opinion.
Maybe, maybe not. Depends on what you buy. If you go for max income "junk", yes, the risk may be higher because the high interest income presumably reflects that risk.
If you buy lower risk, lower income bonds in good solid companies, the chances of default are minimal.
In any case you have no control over what happens with a bond fund- by the time you try to react to a situation at a fund, it's all over. Again, with the actual bonds themselves, you have much more control. Of course it's a fair amount of work to watch over all of that stuff.
When the US 10 Yr gets to a yield of 3.0% I may do a little buying in my income sleeve. Currently, my fixed income sleeve is at about 90% of its targeted allocation while my hybrid income sleeve is at 100% of its targeted allocation. This puts my income area, within my portfolio, at about 97% of its targeted allocation as the hybrid income sleeve is twice the size of the fixed income sleeve. My goal is to have my income area towards full allocation by yearend should interest rates be at 3% or greater. I am pretty much still with my cash build mode as my money market fund (year-to-date) is currently out performing a good number of my fixed income funds. As interest rates continue to rise so does its yield. In addition, I'm thinking that the FOMC will raise interest rates (in steps) a full percent over the next twelve months, or so, putting the US 10 Yr at a yield of about four percent. And, with the Fed raising rates most existing bonds will decline in value to compete with the higher yield of newly issued bonds. Thus, I am also striving at keeping my average bond duration back of three years.
The rolling 12 month total return on my fixed income sleeve is about 1.9% while on my hybrid income sleeve it is about 4.5%. And, for the income area (as a whole) its average total return is better than 3.6% which is also about it's average yield. With this, I have been maintaining my income area's valuation while also enjoying the yield benefit as there has been no loss to principal. In looking back over a five year period I've grown principal by a couple percent per year plus the enjoyment of the income.