Because I invested (past tense) in bond funds thinking they would offer safety of the principal.Why do you hate bond funds so much?
WRONG! I lost $82k.
Although, it recovered a bit since then, and now stands at a loss of around $40k ... 3.5 years later.
When I commented about these steep losses on these forums, I got lectured as if I am a dolt. "Bond funds did exactly what they are supposed to". "Why did you invest in something you didn't understand?". "Bonds offer neither safety of principal nor a guaranteed income". etc. Hmm ... why is it then a part of Boglehead orthodoxy???
Why do you (your dad) wants to invest in a bond fund? You think your principal would be safe, and you will get an income stream? WRONG. You might get an income stream alright, but you are not guaranteed your principal.
If you think that is such a good deal, please send me $100, I promise to give you $4 per year for the next 7 years. That's all I promise, there is no further promise that your $100 will be returned to you intact. I might give you $110 at the end of 7 years, or may be $60. It depends on my mood ("market NAV"). Exactly the same deal as a bond fund.
Statistics: Posted by lakpr — Wed Sep 18, 2024 7:29 pm — Replies 9 — Views 823