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Why Buy Bonds? Stocks – Inflation Bonds -- Recession SIR Chuck McCoy Branch 174 July 18, 2013.

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Presentation on theme: "Why Buy Bonds? Stocks – Inflation Bonds -- Recession SIR Chuck McCoy Branch 174 July 18, 2013."— Presentation transcript:

1 Why Buy Bonds? Stocks – Inflation Bonds -- Recession SIR Chuck McCoy Branch 174 July 18, 2013

2 Bond Ladders Help you keep track of your bonds and space out maturities

3 Where Do I Start? Microsoft Excel is an easy program to get a ladder going Adjust row height and column width to fit the kind of table you want.

4 What’s A Ladder? A tabulation of bonds you own which can help you avoid two common problems: All of your bonds mature at once so you have a potful to reinvest at the wrong time You have been too conservative or too liberal in bond buying so that your risk/reward ratio is cattywampus.

5 Start with a Blank Excel Worksheet

6 Typical Bond Ladder Maturity

7 Mr. Smith bought some Bonds; here is his handsome portfolio Taxable (Corporate) Bonds: 15Atlantic Richfield 9-7/8 3/1/16A-Non-callable (NC)Schwab 10Coca cola Ent 8/1/17AA-NCWellstrade 20PPG Inds 6-5/8 3/15/18BB+Call 100Schwab 10Anheuser Busch 3/1/19A-Call 100Schwab 10IBM Deb 11/1/19A+NCWellstrade 20Sprint Cap 5/1/19B+Call 100Wellstrade “Tax-Free” Muni 30Escondido HS Zero 11/1/17BBBNCAmeritrade 15Stockton Pub Finance 4.0 8/1/18A-Call 100Ameritrade 10Berkeley Bldgs 5.0 8/1/19AANCFidelity 10LA Unif Sch Dist /1/22AA-Call 100Fidelity 20Roseville Elec /1/23A-Call 100Fidelity 10Bay Area Toll Auth 5.0 4/1/20AACall 100Ameritrade

8 Mr. Smith’s Ladder Maturity

9 Mr. Smith’s Ladder Quality


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