So what if using the money in less than 12 months? Sell or stay? Just got in to fund to try to lower my risk. All my money was in DDS (my employer). Made a 300% return which is unheard of and my son advised me to get out before something changed too good to be true. It went up like $8 after I sold at $85 but since went done again. So lost job and then moved money to PTTRX and now lost out on some of those gains (bought in at $11.30). Is my timeline to short to bank on making any money and should I just leave in cash...
I agree about this turd of a fund. It's supposed to be safe income, yet it has lost value over the last year, even including dividends. If it were properly managed, that wouldn't have happened. If stuffing your mattress is a better investment than a managed fund, something is wrong with that fund.
Actually it is not safe. 'Total Return' should clue you off for one. In order to achieve long term total return risks need to be taken and recently you saw the bad with the good. A 'safe fund' is a low duration fund. This is not. Secondly, Morningstar put PTTRX above average risk in it's category.
I am planning to pay off my home with the proceeds over 2 tax years. I have a little more money saved and with Social security and a part time job until I can't work any more, I will manage. I am paying 8.5% interest rate on my mortgage (since I wasn't a high wage earner during my life I got stuck with this rate and was never able to refinance) and since I made such a return on the stock, it just made more sense to pay off house. I am a simple person but the mortgage will make it impossible to make it and I thought it makes more sense to pay off. Was just trying to get a little return with this bond fund but not working out that way.
In any case you should not be in bond funds for the next two years or so ( and get back into them when the interest rates stabilize). If you want to get into fixed income then maybe look into individual bonds with maturity in say six years. OR if you wish you may invest in beaten down preferreds, there are many available with minimum risk that are paying 5% plus.
If you're using ALL the money in a year, then you should be in a bank IRA cd or money market....but I find that hard to believe because if you use it all in a year, you'll have nothing left to live off of..... You should be in a diversified portfolio with a good mix of funds that is going to last you all through your retirement. Just because you hit retirement doesn't mean you stop investing. Need to give us a little more to go off of......
I retire in two years, I have half cash (2.1% return) now, using as a hedge, and the intial pot I will draw on. Half long on equity, very little bonds at this time. I am waiting for the bond mutual funds like this one to tank, then will move some cash in. I work in the funds in my 401K, so I am limited in what to choose. The half cash recently came out of equities, so I have done well. I was getting the heebee jeebees with Iran/nKorea/FED raising rates so I decided to do some stable value and wait for something to blow up, then make a move.
"...Made a 300% return which is unheard of ..."
Whether or not it is "unheard of." depends upon the time frame that you made your "300% return" over.
A lot will depend upon just how much money you have vs. how much money you spend.
Generally speaking, for a year or less, at this particular moment in history, I would stay very conservative but your situation may be a lot different than mine.