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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?


To: Lars who wrote (43)8/16/1998 2:41:00 PM
From: Ken Brown  Read Replies (1) | Respond to of 15132
 
You are capturing almost 90% of the historical return of the stock market in tax deferred account that is locked in for upwards of three decades.

As I mentioned once before on "the other" thread, since bonds are marked-to-market, another way to look at it is using the current value of his bond portfolio. Using current value, his 9%+ bond portfolio is yielding more like 5.6%, so if he were so inclined, and he could find a suitable investment vehicle, he could sell and re-invest in a higher yielding manner.

I, too, bought 30 yr, 9%+ bonds many years ago, thanks to Bob. I sold them after yields went so low that I felt they simply weren't worth holding. I think that was at about 7%. Hmmmm.

Ken