Make sure you understand what the bond fund you purchase contains
If they are 'total bond market' kind of funds, then its less important what maturity they have and rather what the underlying bonds actually are. As we all learned in the housing crisis, the rating from agencies means absolutely nothing with regards to actual risk and the 'mortgage backed security' is a large portion of bond funds these days (again)
Using BND as an example of where to look a bit closer: https://investor.vanguard.com/investmen ... omposition
The bond fund may not be what you think it is - aka safe (and BND is not even bad at all)
Make the profit on the stock side of your portfolio and make sure your bond side is indeed as safe as you want it to be and not chase yield there.
If they are 'total bond market' kind of funds, then its less important what maturity they have and rather what the underlying bonds actually are. As we all learned in the housing crisis, the rating from agencies means absolutely nothing with regards to actual risk and the 'mortgage backed security' is a large portion of bond funds these days (again)
Using BND as an example of where to look a bit closer: https://investor.vanguard.com/investmen ... omposition
The bond fund may not be what you think it is - aka safe (and BND is not even bad at all)
Make the profit on the stock side of your portfolio and make sure your bond side is indeed as safe as you want it to be and not chase yield there.
Statistics: Posted by deikel — Thu Aug 22, 2024 2:24 pm — Replies 5 — Views 287