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Understanding bonds: sorry for my ignorance; help appreciated.

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  • #16
    Originally posted by nastle View Post

    I have no financial planner
    I have these assets in the permanent portfolio and golden buttery portfolio right now
    https://www.whitecoatinvestor.com/ho...nal-statement/

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    • #17
      The bond yield is the rate over a given term. The other piece to consider is the time value of money. On a short time scale, like three months, it will make very little difference in discounting those future cash flows.

      You are looking at zero-coupon bonds purchased at a discount. The YTM can get a bit more convoluted as you increase the bond's duration.

      A question, mostly because I'm curious, why t bills right now and not another short-term debt instrument? Not a criticism. I am trying to understand what people are doing in the current environment.
      Cobin Soelberg, M.D., J.D. - Principal & Owner
      Helping physicians make intelligent money decisions to build and protect their hard-earned wealth
      Greeley Wealth Management | [email protected]

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      • #18
        Originally posted by altadoc View Post
        The bond yield is the rate over a given term. The other piece to consider is the time value of money. On a short time scale, like three months, it will make very little difference in discounting those future cash flows.

        You are looking at zero-coupon bonds purchased at a discount. The YTM can get a bit more convoluted as you increase the bond's duration.

        A question, mostly because I'm curious, why t bills right now and not another short-term debt instrument? Not a criticism. I am trying to understand what people are doing in the current environment.
        I am just trying to learn about all different kinds of bonds. I will make a bond ladder or CD ladder + cash to fight SORR when i fully retire. what do you favor to avoid SORR ?

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        • #19
          A CD ladder is relatively easy to implement. You can do something similar with bonds, but it takes a little bit more time and work. I tend to favor simplicity and go with a CD ladder.
          Cobin Soelberg, M.D., J.D. - Principal & Owner
          Helping physicians make intelligent money decisions to build and protect their hard-earned wealth
          Greeley Wealth Management | [email protected]

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          • #20
            golden buttery portfolio. Sounds delicious.

            I appreciate this bond thread.

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