March 18, 2015
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We are suggesting another defined maturity bond fund, this one from iShares. Regular readers know that we also own several similar funds from Guggenheim. There are NOT like a regular bond fund. The defined maturity funds hold all bonds to maturity and refund your initial investment when they close the fund in 2021. I like to buy these ‘on sale’ and today IBDM is at a .76% discount.
They provide you a rather low 4% yield. No this is not going to make you rich but it’s a reasonable return compared to other investments available. The shares can be sold at any time, if necessary. Bottom line: I consider these funds to be a safe and conservative investment. Try to get at $99.55. Do NOT pay more than $100. (Update: It looks like we will have to pay more than $99.55)
57% of the bond holdings are rated A or AA investment grade with the remaining BBB.
1. Exposure to investment grade corporate bonds that mature between January 1, 2021 and December 31, 2021
2. Combine the defined maturity and regular income distribution characteristics of a bond with the transparency and tradability of a stock
3. Use to seek income, build a bond ladder, and manage interest rate risk
The legal name of this fund is the iShares® iBonds® Dec 2021 Corporate ETF.
The iShares® iBonds® Dec 2021 Corporate ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar-denominated, investment-grade corporate bonds maturing in 2021.
MOVIES. Cinderella. Even adults will love this. Yes everyone has seen the story but not like this. Disney brings their quality to the party and this thing pops on the screen.
Corrupt government still lying trying to tell you there is virtually no inflation. Thats crap. Depending on where you live the REAL inflation rate is between 7% to 14%.
http://www.chapwoodindex.com/ (full article)
Butowsky began calculating the Chapwood Index in 2008. Using social media, he surveyed his friends across the country to determine what they bought with their after-tax income. He narrowed the list down to the most frequent 500 items and asked his friends in America’s 50 largest cities to check the prices on those items periodically. The Index shows the fluctuation in each city in the cost of items such as:
Starbucks coffee, Advil, insurance, gasoline, sales and income taxes, tolls, fast food restaurants, toothpaste, oil changes, car washes, pizza, cable TV and Internet service, cellphone service, dry cleaning, movie tickets, cosmetics, gym memberships, home repairs, piano lessons, laundry detergent, light bulbs, school supplies, parking meters, pet food, underwear and People magazine.
The Index forces middle-class Americans to recognize that their dependence on income increases pegged to the much-lower CPI virtually guarantees that they will run out of money before they die, because people are living longer and there is a huge difference between the CPI and the real world.
As an example, the CPI rose 0.8 percent in 2014. But in Boston, the Chapwood Index shows that the real cost of living increase was 10.7 percent. This means that if you work in the Boston area and got an 0.8 percent raise in your salary, it wasn’t nearly enough to cover the increase in your day-to-day expenses.
It was especially bad in San Jose, CA , where the Chapwood Index shows a 13.7 percent rise in the cost of living. Even the city with the lowest increase, Colorado Springs, CO , showed a 6.6 percent rise, a 5.8 percent higher than the CPI.