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Is it too late to start a position in bonds?

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  • Reply to @Daves: YACKX offers a lot of these types of stocks. SPLV is another option, and that provides a monthly dividend. There are plenty of equity income funds, such as PRBLX that would be another option.
  • don't know if it's too late. I don't want to sponsor this but look at this, very attractive offer:
    sorry if this is a commercial but just want to pass 'em along for those interested


    You are receiving this message as an update to your recent request for information on the Southern Star Operating LLC Energy Capital Bond offering. Please be advised that our 1 Year Bonds (below) will be discontinued and no longer available for purchase after close of business March 29, 2013*. Until then, the Bonds are offered at a 10% discount to face value and in denominations of $10,000 each as follows.



    Our 1-Year Bonds (Series 2013-A):

    May be purchased with a minimum of $10,000 (1 Bond Minimum);
    Offered at 90% of Face Value;
    Accrue interest at 6.5% per annum;
    Annualized Yield to Maturity: 18.33%
    Pay no quarterly interest payments until maturity; and
    Mature on December 31, 2013.

    Bonds are 100% secured by oil and gas assets pledged as collateral. As we acquire additional oil and gas assets utilizing Bond proceeds, these too are pledged as security for the Bonds. The Bonds are further secured by corporate guarantees from the owners of the assets and the underlying oil and gas lease holder.



    Approved for IRA/401k accounts. Please see attached documents and call or email me to subscribe.



    * Company reserves the right to discontinue Bonds prior to March 29.


    Sincerely,
    Don


    Don Howard
    Southern Star Resources, LLC
    4692 North 300 West, Suite 210
    Provo, Utah 84604
    888.826.4834 Toll-Free
    801.877.3154 Direct
    801.877.3164 Fax
  • Reply to @johnN: I would be very cautious of this offer. Just very high interest rate on a short term bond... If they could get money cheaper from any other sources they would do so. This is a very very risky operation.
  • The user and all related content has been deleted.
  • Reply to @Maurice: Nice work Maurice. Folk weren't handing over 18.33% a year for nothin last time I looked. Junk bonds are best left to professional fund managers who have the necessary research staffs, accountants & lawyers at their disposal.
  • Reply to @Daves: Hi Dave,

    Typically Mutual Funds are not up my alley as much as individual stocks. Sorry. VYM as an ETF would be my closest strategy to give you the worlds best companies, pays a 3% yield with a tiny expense ratio, low risk, no worry fund. On individual stocks, please remember that when the market crashes, that's when the big gains are made.
    The dividends build and reinvest during the crash cycle, and when the market recovers that's when your stocks just go absolutely "Crazy".

    As dumb and counter intuitive as it seems, don't be afraid of down markets. You almost look forward to them. That's where you hit the home runs with world class stocks that pay dividends. And the only time you worry about world class stocks is when they cut the dividend. Which frankly, seldom happens in my experience of 50 years.
    Forget my earlier Walmart example, here's an even better example. We purchased PM, (Phillip Morris) 20 years ago. PM has gone up continually since then, then split into Altria and then split into Kraft and Kraft split into Kraft and MDLZ. So the investor received for free, three additional companies, which have all been terrific. That's fairly difficult with a mutual fund but not uncommon with individual holdings.

    Trust this might shed some light on having a few stocks in your portfolio.
    Best Regards,
    Steve
  • Reply to @hank: Beware there is no FREE lunch. Gordon Gekko once said "for the lack of better words, greed is good..." I would take Mo advice and steer clear of Southern Star.
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