Quantcast
Channel: Bogleheads.org
Viewing all articles
Browse latest Browse all 5298

Personal Investments • Short Term vs Long Term Bond Funds

$
0
0
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.
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.

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



Viewing all articles
Browse latest Browse all 5298


<script src="https://jsc.adskeeper.com/r/s/rssing.com.1596347.js" async> </script>