I dumped my shares on the pump.
The cigar boys are on their own now.
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And if you want you can still try this out with by stealing some of the zero coupon bearer bonds that are still in common use today.
It’s supposed to be Goldman I think.
well I finished margin call
well no wonder I never heard of this before, not a movie for normal people I reckon. Everyone enjoys the most realistic wall street movies. well wolf of wall street had a few things I didn’t quite believe but ya know.
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Yeah that makes more sense than Lehman, which I was thinking it was the whole time - especially because the head guy is named John Tuld.
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I would take the cash option. Sometimes claiming stuff like that can be a horror story. We tried to collect on bonds for my dad for decades and couldn’t get it ever done.
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Have not seen Margin Call but really liked Big Short. Will have to remedy that
I would say Margin Call is a better movie, it’s basically a master class in acting across the board. I liked them both though.
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GameStop movie. The 2nd line in the trailer is “How much did you lose”
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I wouldn’t naturally be interested in this movie but I like Paul Dano.
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So if anyone can answer me I have a question regarding a couple ETFs I’ve been looking at for a couple days, thinking of adding to my roth ira to hold for retirement:
So yeah, both are advertised as “tax-exempt bond funds” which is whatever they’re already exempt in the IRA so who cares about that. Both are essentially the same thing, I think. One costs more and is a newer product but I think they otherwise function essentially the same. But I have some questions about whether or not I should even be looking at stuff like this when saving/investing for retirement. I know all about the 80/20 rule so I guess this would be part of my “20” but I wonder if it even should be?
If you drill down through ‘historical data’ on them, some things stick out: Both, particularly the cheaper/older one, appear to be paying steadily-increasing, monthly dividends. Normally this is pretty cool. But they’re “bond etfs” like, shouldn’t they be paying more (and cost less) now that interest rates are higher? especially VTEB appears to have been about the same price along with the steady tiny bump in dividend over time, basically ignoring interest rates entirely. I mean, that seems okay, if you’re looking for steady income. But even given that, even given the tax advantages, how would someone not be better off putting their money somewhere else, especially right now, getting 5% + return even given the tax implications? Seems like I could do better than this yield just throwing it all into investment-grade munis, and still be exempt from at least fed taxes, no?
Basically plz sell me on these products or talk me out of them
Do not buy tax exempt bond funds inside of a tax sheltered account.
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Okay say I’m already retired. Same advice?
Yes
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Your “20” should be treasuries right now compared to some stinky bond fund.
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A bond funds typically holds a lot of treasuries
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100% this.
Tax-exempt funds generally have lower yields than non tax-exempt funds. However, the lack of taxes can compensate for that. But in your case, because it’s held in an IRA, the lack of taxes is not really a benefit. So you get the lower yield without any compensation.
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To answer your question, I’d recommend putting your “20” in BND, but you could get more complex by including international and/or TIPS. You could also explicitly go for a long-term fund like BLV.
The main thing you want to look at with a bond fund is the duration and yield to maturity. BND for example has a duration of 6.5 years and yield to maturity of 4.8%. This basically means that any money committed today has an immediate expected return of 4.8% over a 6.5 year time horizon. A bond fund is going to constantly be rolling over maturing bonds into new ones to maintain a pretty constant duration, so actual returns will vary.
The reason why you would buy a bond fund at 4.8% that carries term risk vs. say, a money market at 5.2%, which has no term risk, is that the implied forward rate of a money market fund in future years is less than 4.8%. BLV has a duration of 14 years and a 4.9% yield to maturity.
An Melkerson’s explanation about tax-exempt bond funds is correct.
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Anyone here invest in Pro-Dex? There was a big thread on 2+2 back in the day.
I’m trying to figure out what’s going on with their 10k as they’ve always released it on the first or 2nd Thursday of September with the last few years releasing the top and bottom line numbers the last week in August.
They still haven’t released anything, Bloomberg has an estimated release date of Monday the 25th which doesn’t make any sense as they’ve always done every release on Thursdays.
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