I invested in a bond fund because the 3-fund book advised me to do so. I chose the lowest ER bond fund available to me. I chose a bond AA that made sense to me based on the various formulas of conventional wisdom. As an accumulator nearing retirement, I'm contributing to maintain portfolio AA, which means I'm over-contributing to the bond fund (not really OVER-contributing; I predict equity earnings and distribute my contributions to consistently keep AA at my desired level of risk). I don't concern myself with the bond fund NAV; lower is better in the accumulation stage. I note that monthly dividends are consistently 'good' and continue to invest in my bond fund (FXNAX).
In short, target AA + IPS = I don't care what bonds are doing at any given moment any more/less than I care about the US or int'l equity portion of my portfolio is doing. It's fixed, constant, unyielding, unchanging, irrevocable, etc. I don't play the lottery, but my philosophy is no different. If I play the birthdays of my children but they never hit, I think I'll change my numbers. Then my childrens' birthdays hit...
In short, target AA + IPS = I don't care what bonds are doing at any given moment any more/less than I care about the US or int'l equity portion of my portfolio is doing. It's fixed, constant, unyielding, unchanging, irrevocable, etc. I don't play the lottery, but my philosophy is no different. If I play the birthdays of my children but they never hit, I think I'll change my numbers. Then my childrens' birthdays hit...
Statistics: Posted by skipper — Fri Feb 07, 2025 11:10 pm — Replies 79 — Views 7875