Has anyone had to sell their long term bonds at a loss?
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- dualstow
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Has anyone had to sell their long term bonds at a loss?
From another thread, I learned that some of you have been following the pp strategy for quite a long time. Have any of you long-timers ever had to sell your 30-year treasuries at a loss when there were only 20 years left to maturity? Were you tempted to hold on until maturity and just find a way to replace the bonds without selling (something I couldn't afford to do)?
I'm curious about this, because I don't think we'd have a reason to unload any of the other 3 assets except for rebalancing, which is of course desirable.
I'm curious about this, because I don't think we'd have a reason to unload any of the other 3 assets except for rebalancing, which is of course desirable.
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Re: Has anyone had to sell their long term bonds at a loss?
I sold a small amount of bonds in 2009 that took a loss for tax reasons. I wouldn't hold them to try to recover losses because you could wait a long time. Most of my bonds have somewhere in the 24-27 years maturity right now. I will sell my bonds when they get to 20 years and roll the money into higher yielding bonds along with gold and/or stock profits.
Re: Has anyone had to sell their long term bonds at a loss?
I've sold LT Treasury bonds to replace them with longer-dated ones, but not at a loss as best I can remember. They were in my IRA and I didn't pay much attention to the specific gains or losses because there were no tax consequences. I wasn't tempted to hold them to maturity, but I was a little uneasy (I shouldn't have been) about rebuying the longer-dated ones.
- dualstow
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Re: Has anyone had to sell their long term bonds at a loss?
Thanks for the replies.
Yeah, mine are in my 401(k), which doesn't have a whole lot other than 30-year treasuries. So, no tax benefits for me.
Yeah, mine are in my 401(k), which doesn't have a whole lot other than 30-year treasuries. So, no tax benefits for me.
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Re: Has anyone had to sell their long term bonds at a loss?
My 401(k) account has only gold and LT bonds (brokerage window). If someone looked at it in isolation they would say I was crazy.dualstow wrote: Thanks for the replies.
Yeah, mine are in my 401(k), which doesn't have a whole lot other than 30-year treasuries. So, no tax benefits for me.
What's funny, though, is that this two asset combination has performed VERY well in recent years, so I would probably look like a very lucky crazy person.
Last edited by MediumTex on Fri Apr 15, 2011 9:29 am, edited 1 time in total.
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- dualstow
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Re: Has anyone had to sell their long term bonds at a loss?
Why put gold in your tax-deferred account instead of stocks? Is it due to gold's higher tax rate when you sell?
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Re: Has anyone had to sell their long term bonds at a loss?
No, it's just where I have room.dualstow wrote: Why put gold in your tax-deferred account instead of stocks? Is it due to gold's higher tax rate when you sell?
I have all my stock holdings in tax deferred accounts (IRAs).
My current 401(k) account is not that large a component of my overall holdings.
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Re: Has anyone had to sell their long term bonds at a loss?
MT,
Is there a reason you don't have much in tax-deferred accounts? Do you make an attempt every year to get as much into them as possible or are you happy with your very non-tax-deferred weighted allocation? If the latter, is there a reason you avoid putting more in there?
Is there a reason you don't have much in tax-deferred accounts? Do you make an attempt every year to get as much into them as possible or are you happy with your very non-tax-deferred weighted allocation? If the latter, is there a reason you avoid putting more in there?
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Re: Has anyone had to sell their long term bonds at a loss?
It's just the opposite; most of my holdings are in tax deferred accounts.moda0306 wrote: MT,
Is there a reason you don't have much in tax-deferred accounts? Do you make an attempt every year to get as much into them as possible or are you happy with your very non-tax-deferred weighted allocation? If the latter, is there a reason you avoid putting more in there?
Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
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Re: Has anyone had to sell their long term bonds at a loss?
NM,
I skimmed your post too fast.
I skimmed your post too fast.
"Men did not make the earth. It is the value of the improvements only, and not the earth itself, that is individual property. Every proprietor owes to the community a ground rent for the land which he holds."
- Thomas Paine
- Thomas Paine