Treasury Bond Buying Tutorial

Discussion of the Bond portion of the Permanent Portfolio

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Tortoise
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Re: Treasury Bond Buying Tutorial

Post by Tortoise » Sat Apr 14, 2012 1:26 am

Also, Reub, it doesn't matter when you sell the bond within a given year. Immediately after a coupon payment, the market price of the bond simply drops by roughly the amount of the coupon payment.
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Greg
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Re: Treasury Bond Buying Tutorial

Post by Greg » Wed May 23, 2012 10:05 am

Anyone know for Fidelity if you were to purchase 10 $1000 face value 30 year bonds and then want to sell, can you sell just 5 of those original 10 or do you have to sell all 10?
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Re: Treasury Bond Buying Tutorial

Post by dualstow » Wed May 23, 2012 10:17 am

1NV3ST0R wrote: Anyone know for Fidelity if you were to purchase 10 $1000 face value 30 year bonds and then want to sell, can you sell just 5 of those original 10 or do you have to sell all 10?
Although I've never sold any, I would think you could sell 5. After all, (unlike Vanguard) Fidelity does let one buy fewer than 10.
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Re: Treasury Bond Buying Tutorial

Post by hoost » Wed May 23, 2012 10:19 am

Vanguard also let's you buy fewer than 10.  I think the price goes up slightly though.  I'm not sure how their prices/internal markups are relative to Fidelity, I bought six bonds a couple months ago with no issues.
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Re: Treasury Bond Buying Tutorial

Post by Greg » Wed May 23, 2012 10:41 am

I'll have to call Fidelity and see what they say. Perhaps it is like tax lots with ETFs/Stocks where you can pick and choose how much of each lot to sell.
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Re: Treasury Bond Buying Tutorial

Post by foglifter » Wed May 23, 2012 11:58 am

1NV3ST0R wrote: Anyone know for Fidelity if you were to purchase 10 $1000 face value 30 year bonds and then want to sell, can you sell just 5 of those original 10 or do you have to sell all 10?
I just checked - yes, you can sell even 1 bond.
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Re: Treasury Bond Buying Tutorial

Post by Greg » Wed May 23, 2012 12:55 pm

Thanks foglifter. That keeps me from having to talk to people. I can now resume my hermit lifestyle.
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Re: Treasury Bond Buying Tutorial

Post by moda0306 » Wed May 23, 2012 12:57 pm

1NV3ST0R,

Who's that a picture of?
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Greg
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Re: Treasury Bond Buying Tutorial

Post by Greg » Wed May 23, 2012 1:05 pm

moda,

That's a picture of Frédéric Bastiat. Really cool 19th century french dude who helped to develop the economic term of "opportunity cost". He's got a really good little book called "The Law" which I really liked. I initially heard about him from a Ron Paul debate where the moderator asked him if he could recommend one book to read what would it be.

http://en.wikipedia.org/wiki/The_Law_%281849_book%29

Moda, I could ask the same question about what your picture is of.
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Re: Treasury Bond Buying Tutorial

Post by Xan » Wed May 23, 2012 1:12 pm

I am a big Bastiat fan myself.  Not so much a fan of Matthew Lesko though.
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Re: Treasury Bond Buying Tutorial

Post by moda0306 » Wed May 23, 2012 1:18 pm

1NV3ST0R,

It's a picture of that ridiculous guy who schemes government programs to get people money and writes books about it.  I tend to scheme the tax code for tax avoidance/deferral strategies (legal, of course).
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Greg
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Re: Treasury Bond Buying Tutorial

Post by Greg » Wed May 23, 2012 1:26 pm

I wouldn't say to "scheme the tax code", just "intelligently utilizing resources for maximum monetary gain". It's obviously much easier to say that way. (sarcasm ensues)
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