Originally Posted by robertf57
I have no idea what prompted Suzie's comments; but, the major drawback to bond funds in my eyes is the absence of a real maturity. I hold no bond funds and currently no bonds. I do have some cash producing REITs and real estate accounts in my retirement plans
Yes, there are pros and cons to that as well. If you have enough money to invest in enough individual bonds to cover default risk, stagger their maturity dates and hold to maturity, I think holding individual bonds is probably better if you can do due diligence on the bonds.
But yes, with bond funds there is no final maturity where you are guaranteed to get your entire principal back (assuming no default). So you are at the mercy of Mister Market and the current trend of interest rates.