Join Early Retirement Today
Thread Tools Search this Thread Display Modes
New here:hope to retire 2yrs, with a question
Old 01-19-2011, 02:09 PM   #1
Full time employment: Posting here.
Join Date: Jan 2011
Posts: 898
New here:hope to retire 2yrs, with a question

I'm sure this question has been asked many times: For the conservative portion of my portfolio, Bond Fund or individual bonds? Vanguard recommended funds, and actually strongly advised against individual bonds.

Current total portfolio $1.1 million. My wife will likely work another 6-7 years, my target is 2 years (we're both 58 years old). I'm concerned that with interest rates so low, they can only go up and I'm worried that interest rate increases would cause loss in value to negate the returns.

I previously had a very aggressive mix of stocks: cash, and now want to reallocate.

mystang52 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-19-2011, 02:26 PM   #2
Recycles dryer sheets
Join Date: Aug 2009
Location: westerville
Posts: 217
You are correct in being concerned about bonds and thier future value with rates are where they are today. Interest rates in general are artificailly low due to the Federal Reserve trying to stimulate the economy thus in general bonds are prices may be artifically high. My personal belief some bonds and bond funds may actually be in a bubble forming stage of a cycle. Currently I have more allocated to a divesifed portfolio stock funds and the conservative portion in cash awaiting higher interest rates to then move back into some bond funds. I believe bonds are carryin more risk than usual right now. Looking forward to others thoughts as well. I do aggree with VG on funds vs individual bonds unless you can make you own fund by holding many indiviual bonds to reduce risk from a default.

Trawler is offline   Reply With Quote
Old 01-20-2011, 09:59 AM   #3
Thinks s/he gets paid by the post
DblDoc's Avatar
Join Date: Aug 2007
Posts: 1,224
I don't feel I can predict both when and how fast bond rates rise so trying to time the bond market won't help me. I continue to diversify into short, intermediate term and TIPS. Here is Sauter's view at Vanguard:

If you don't feel you can tolerate much if any short term drop in your bond portfolio then maybe stick to short term treasuries or CD's for now.

At 54% of FIRE target
DblDoc is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Ethical question: fire vs retire ReadyOrNot Hi, I am... 33 11-05-2010 06:29 PM
I hope that his isn't too simple a question to ask here Sevo Stock Picking and Market Strategy 7 10-14-2008 02:23 PM
hi, nice forum. could i retire? help with investment question? slg8080 Hi, I am... 2 01-09-2008 08:59 AM


All times are GMT -6. The time now is 01:52 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.