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PIMCO Total Return Instl Message Board

  • vexatious2001 vexatious2001 Nov 26, 2011 5:45 AM Flag

    This fund is dead

    In actual dollar balances, this fund is down significantly from (6) months ago. I have limited choices within a 401K and I had HOPED that this fund would be a "safe" alternative to having the entire balance in a stable value fund.

    This has not turned out to be the case.

    Since my only other choices, beyond PTTRX & the stable value, are
    "managed" stock funds of various flavors I am pulling the maximum loan from the 401K and will deposit the money in an FDIC-insured bank account.

    .4% (0.004) interest is better than losses.

    Europe is about to crash and will probably take the U.S with it.
    I will keep a small amount in equities as a hedge, but I want a core balance that is SAFE.

    PTTRX had its day. So did Magellan. And Bill Miller. And John Paulson.

    And Bill Gross.

    Time to move on.

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    • "..I am currently taking the CPA exam and have two parts done, also on my first try...."

      Back when I sat for the exam, it was taken all at once, over (3) days. If I recall correctly, 21% of those that took it at that sitting passed.

      You are correct in your assertion that holding the certificate does not make one a "tax expert." There are in fact few-to-no tax items on the test.

      But passing it all at once (especially without an accounting degree)does prove that I have the mettle to learn what I need to learn, to do what I need to do. I did not follow the tradition path to the CPA exam, and I question traditional assumptions concerning tax planning, retirement planning & investing.

      Yes, I am a maverick. And if you want to be a suit-and-tie CPA, you had better not be a maverick. Your peers won't tolerate independent thought. They will find you "vexing."

      "...but you can definitely play this range...."

      Yes, one can day trade, as you suggest. Personally, I have little interest in gambling. I did hold a minor position in stocks during the run-up yesterday, but sold at the end of the day. Perhaps the markets will go higher; I preferred to take the bird in the hand, vs. the (2) in the bush. And at the moment I do hold a small position in PTTRX, but only about 40% of what it was back in May.

      "..taking out a 401k loan is the complete opposite of tax avoidance...."

      Oh, really ? Is that what those fellow who "make mistakes and get penalized" said? If only tax planning was that simplistic...

      "..The FED will have printed more money than you will probably make in 10 years...'

      Yes, the Federal Reserve can "print" massive amounts of money. Just as the collapse of asset prices can destroy massive amounts of money. People have been predicting the demise of the dollar for a few years now but it really hasn't happened yet. It is certainly possible, maybe even probably. But it's a concern for tomorrow, not today. And anyway, to flee the dollar one must have a destination; Where are you planning on going?

    • I would probably look at CAD first,especially since most funds have their largest gains in the first year.

    • Just curious what several of you think of PAAIX as a suppliment to PTTRX?

    • Vex, I have been following the posts on this board for some time now as I have been slowly accumulating a position in PTTRX. Post's posts are generally (99.5%) very helpful and insightful. When he talks about something he backs it up with logic and facts which apparently to you I guess reads as too long of a post. So far I have read a couple of your posts and all but maybe one have not contained "any particular wisdom in regards to money management or tax avoidance." In fact your idea that taking out a 401k loan is the complete opposite of tax avoidance. Your choice of moving out of equities and PTTRX is your own choice, but why is moving into cash (i.e. the U.S. dollar) such a sound financial decision? In the time it will take me to write this post, the FED will have printed more money than you will probably make in 10 years. This is printed out of thin air.

      Quick tip. If you haven't noticed the market has been stuck in a very distinct range for about the last 6 months. Dow: 11,000 - 12,300 and S&P: 1170-1280. Today changes things slightly but you can definitely play this range.

      You may have your CPA but that does not make you the master of taxes. I know and work with people that have had their CPA license longer than I and probably you have been born and they still research daily on issues. They still make mistakes and get penalized by the IRS and have to fight the penalty. If the tax code was so easy then there would be no need for your fancy CPA license and the legions of public accounting drones. And just to be fair I am currently taking the CPA exam and have two parts done, also on my first try.

    • Well you engaged me a Socratic exchange in which case I said I would respond.

    • "That's probably because you don't know how to read."

      Thought you said you were done with me?

    • That's probably because you don't know how to read.

    • "..In the alternate I am done with you..."

      Suits me.

      Also, your posts are too long.

    • "...having passed the CPA exam doesn't necessarily qualify you as an authority on ERISA regs.."

      I know enough about ERISA to be thoroughly familiar with PWBA's EXPRO.

      I think you're SOL on topping me on this subject matter.

    • Thank you for taking the time to post this message. This thread has been driving me crazy since it began.

      Keep your powder dry. Remember that irrational volitile moves in markets always presage a collapse. It happened with tulips and much later with dot coms. Volitilty is the enemy of a stable economy and we have'nt seen the end of it. At the very least PTTRX is one of the safest harbors in this storm.

      If I had to choose among losing all my pricipal in a Stable Income Fund or in equities I would take my PTTRX holdings any day, since they should continue paying monthly dividends even if marginal. With this fund as a retirement vehicle people should look to levering into as many shares as possible to maximize thier monthly dividend in thier later years.

      If PTTRX NAV drops to even 30% of its original value, at least that 30%, if it represents 1 million shares will still pay out enough of a dividend to live on and the fund lives on while others bankrupt.

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