Ryan,
I think for your purposes the MBS will do fine. The truly well defined risk is in the high yield bond market. The large issuance in recent years, high correlation to the stock market, and narrow spread to Treasury, makes this asset class likely subject to large losses when the next recession hits.
Igy
Ryan,
I suspect that you already know this, but keep in mind that Igy's sole focus regarding bonds is purely speculative. That's only natural since he works for Wall Street and makes money from sales. So he naturally focuses on the changing value of bonds on the open market. But holding bonds to maturity will result in a 100% return of principal plus interest, barring default. It's a pretty safe bet though there is always the effect inflation will have on your purchasing power.
I agree with Igy, though for different reasons, that short term bonds may be best. Igy likes them because they generate more sales and thus more money for the company. I like them because in a rising interest rate environment you can more quickly take advantage of higher rates rather than being stuck with lower rates for intermediate or long term notes.
Good luck.
Investment Advisor wrote:
Ryan,
I suspect that you already know this, but keep in mind that Igy's sole focus regarding bonds is purely speculative. That's only natural since he works for Wall Street and makes money from sales. So he naturally focuses on the changing value of bonds on the open market. But holding bonds to maturity will result in a 100% return of principal plus interest, barring default. It's a pretty safe bet though there is always the effect inflation will have on your purchasing power.
I agree with Igy, though for different reasons, that short term bonds may be best. Igy likes them because they generate more sales and thus more money for the company. I like them because in a rising interest rate environment you can more quickly take advantage of higher rates rather than being stuck with lower rates for intermediate or long term notes.
Good luck.
this is wildly unfair since he is legally a fiduciary and (now I'm guessing) he probably makes most or all of his money from a percent of assets, not commish.
Igy correct me if I'm wrong, but I suspect commissions are not much of your income.
Igy, ran my rust buster today and it went well. 81% AG, which is solid for me. So I think my high intensity/sllightly lower mileage plan is working.
Now I'll take a rest week and race again on Sunday. It's a big race I do every year so it's worth a taper.
Hope you can get out for a good one.
Igy works for Morgan Stanley, a firm that requires their retirement account holders to sign a waiver exempting the firm from adhering to fiduciary standards. Also, a majority of MS accounts are commission accounts.
Investment Advisor wrote:
Igy works for Morgan Stanley, a firm that requires their retirement account holders to sign a waiver exempting the firm from adhering to fiduciary standards. Also, a majority of MS accounts are commission accounts.
I've never heard of that - you'd have to prove it to me
but anyway, Igy is a CFP - CFPs must work as fiduciaries. Or they are not CFPs.
Investment Advisor wrote:
Igy works for Morgan Stanley, a firm that requires their retirement account holders to sign a waiver exempting the firm from adhering to fiduciary standards. Also, a majority of MS accounts are commission accounts.
here's a statemetn from MS saying they have fiduciary retirement accounts. Although I'm not completley up to date on the latest legal twists and turns.
“Delivering a retirement account platform based on fiduciary principles that provides the widest possible capabilities and preserves client choice is our vote of confidence in our advisers' continuing commitment to placing client interests first,†Ms. O'Connor and Mr. Saperstein said in Wednesday's statement.
http://www.investmentnews.com/article/20161026/FREE/161029923/morgan-stanley-to-keep-commission-based-ira-business-despite-dolagip,
Thanks. This is the Detector Dud. Smears my character while stealing my handle, posting slanderous posts under that handle, using my wife's name to post. A general sick scum bag.
Your comments about my business are correct. I am a CFP. Very cost conscious with average ROA of 0.58%. Always very ethically driven.
Furthermore my comments to Ryan were general in nature with no agenda. I like commenting on the markets nothing more, and he respectfully asked a direct question. Then this guy comes in with a bunch of made up crap. Always and incessant since I first posted here.
On a more positive note I got out in the Foothills this morning. I ran about 6 miles, walked some of the steeper portions note to over stress the Achilles. I am now down to one PT treatment a week.
Hope you are doing well.
Igy
Good to hear you guys are healthy and out running.
I'm still rehabbing my knee, it's insanely much better, had a weight workout this morning. Can't wait to get running again, but I have to make sure I don't come back too early.
I'll have to be content watching Tokyo tonight on the tube...I wonder if Kawauchi will be running, I love that guy
Maserati,
Glad your knee is better. I had a dream when younger to run Fukuoka Marathon but never had the chance. I am going skiing with the wife tonight usually get back late so I'll check it out.
Igy
I already own a short term treasury bond fund. I also have owned a long term bond fund. That was discussed about 50 pages back in this thread. Of course that has taken a hit in recent month, but only after I was up a ridiculous 20% for the year. I'm comfortable with just continuing to hold that for the long term. I feel like an MBS funds adds another level of diversity within the bonds.
Ghost of Igloi wrote:
Ryan,
I think for your purposes the MBS will do fine. The truly well defined risk is in the high yield bond market. The large issuance in recent years, high correlation to the stock market, and narrow spread to Treasury, makes this asset class likely subject to large losses when the next recession hits.
Igy
agip wrote:
Investment Advisor wrote:Igy works for Morgan Stanley, a firm that requires their retirement account holders to sign a waiver exempting the firm from adhering to fiduciary standards. Also, a majority of MS accounts are commission accounts.
I've never heard of that - you'd have to prove it to me
but anyway, Igy is a CFP - CFPs must work as fiduciaries. Or they are not CFPs.
There was a link to an article posted here recently. That's where I got my info. I'll find it and bump it.
Here's the post. It appears Igy had the link removed.
Beware of Porsche drivers wrote:
For those of you who might have missed it, on Saturday I posted a link to an article intended to educate people about financial planners. Here was Igy's response:
Ghost of Igloi wrote:Detector Dude,
Sorry, as a Certified Financial Planner I am required to follow the DOL guidelines before they existed. So following the DOL for the past fourteen years.
Igy
In reply, I posted this quote from the article:
"Essentially, the firms are saying: We’ll act as fiduciaries when we have to, but we’re not going to do it if we don’t have to.
Other major players in the industry have taken different approaches to the DOL rule. For example, Morgan Stanley and Ameriprise both announced that they will continue to sell commission-based products in their IRAs — and they will force their clients to sign contracts exempting the firms from the obligation of meeting the fiduciary standard!"
Apparently this struck a nerve with Igy, a Morgan Stanley employee, as he quickly had it deleted. Based on this action and other recent posts, it's obvious that Igy is not a fan of the truth.
Ghost of Igloi wrote:
Detector Dude:
Let's discuss these these relevant facts first.
1. Explain how you replicated my handle to make slanderous post that appeared to be from me?
2. Explain why you now post using the handle "Portia"?
We can discuss your guilt and motivations later.
Igy
Investment Advisor wrote:
Ryan,
I suspect that you already know this, but keep in mind that Igy's sole focus regarding bonds is purely speculative. That's only natural since he works for Wall Street and makes money from sales. So he naturally focuses on the changing value of bonds on the open market. But holding bonds to maturity will result in a 100% return of principal plus interest, barring default. It's a pretty safe bet though there is always the effect inflation will have on your purchasing power.
I agree with Igy, though for different reasons, that short term bonds may be best. Igy likes them because they generate more sales and thus more money for the company. I like them because in a rising interest rate environment you can more quickly take advantage of higher rates rather than being stuck with lower rates for intermediate or long term notes.
Good luck.
Detector Dude you are a poor Investment Advisor as well as a stupid jerk. Intermediate term and long term bonds have higher fees.
Investment Advisor wrote:
Igy works for Morgan Stanley, a firm that requires their retirement account holders to sign a waiver exempting the firm from adhering to fiduciary standards. Also, a majority of MS accounts are commission accounts.
BS
No BS. Just facts that are easily verified. But then you already knew that.
Ghost of Igloi wrote:
Investment Advisor wrote:Ryan,
I suspect that you already know this, but keep in mind that Igy's sole focus regarding bonds is purely speculative. That's only natural since he works for Wall Street and makes money from sales. So he naturally focuses on the changing value of bonds on the open market. But holding bonds to maturity will result in a 100% return of principal plus interest, barring default. It's a pretty safe bet though there is always the effect inflation will have on your purchasing power.
I agree with Igy, though for different reasons, that short term bonds may be best. Igy likes them because they generate more sales and thus more money for the company. I like them because in a rising interest rate environment you can more quickly take advantage of higher rates rather than being stuck with lower rates for intermediate or long term notes.
Good luck.
Detector Dude you are a poor Investment Advisor as well as a stupid jerk. Intermediate term and long term bonds have higher fees.
I suppose you have resorted to insults because you don't have a viable counter argument.
Investment Advisor wrote:
No BS. Just facts that are easily verified. But then you already knew that.
Twisted facts from the demented and tormented Detector Dude.
Answer the questions, then we will discuss your guilt and motivation.
More insults instead of facts. It's no surprise that you avoid the topic.