BND is not a long term bond fund. It contains some long term, intermediate term, and short term bonds, but it averages out to an intermediate term bond.I have been invested in long term (BND) for several years and have unrealized losses but am hopeful of a recovery, but I'm still getting a great income from it. Any advice for short term vs long term bond funds would be very much appreciated.
If you want a general vanilla good ole work horse bond fund, BND will fit that bill.
Sometimes people have preferences - they want more corporate bonds or more government bonds or less government mortgage backed bonds or whatever they do or do not like. When a person has a preference, some other intermediate term bond fund might fit their preferences better.
For a 60 year old conservative, a mix of BND and a short term bond might be a good choice, but I hesitate to ever suggest all bonds. A portfolio with a small amount of stocks (20 - 25- 30%) should have MORE return with LESS RISK than an all bond portfolio. So I would definitely suggest a minimal amount of stocks (to keep up with inflation).
Statistics: Posted by retiredjg — Thu Aug 22, 2024 6:28 pm — Replies 10 — Views 604
