Without boring you with the gory details, just about the same time the Fed announced a trend of higher interest rates I found myself with a somewhat sizable (to me) portion of my investments in money market and longer term muni bond funds. I would eventually like much of this as the fixed portion of my portfolio and in something like a total or intermediate bond fund with maybe some long term TIPs or treasuries (if this makes some sense).
I’ve dabbled some of this into a short and an intermediate bond fund and some I bonds, but find myself reluctant to go much longer than a couple of years durations. And though advisors recommended avoiding long term bond funds, my munis have held up well with the interest rises so far.
I know interest rates are not perfectly predictable, but it sounds like those bold enough to predict are saying 6 or maybe 8 more quarter point raises in the next year. I guess three general thoughts are to stay short and wait, bite the bullet go longer with everything now, or cost average over time.
There are probably some fancier things to do, like so CD ladders, but I’m also hoping to keep things a bit on the simpler side. Anything I'm missing?
I’ve dabbled some of this into a short and an intermediate bond fund and some I bonds, but find myself reluctant to go much longer than a couple of years durations. And though advisors recommended avoiding long term bond funds, my munis have held up well with the interest rises so far.
I know interest rates are not perfectly predictable, but it sounds like those bold enough to predict are saying 6 or maybe 8 more quarter point raises in the next year. I guess three general thoughts are to stay short and wait, bite the bullet go longer with everything now, or cost average over time.
There are probably some fancier things to do, like so CD ladders, but I’m also hoping to keep things a bit on the simpler side. Anything I'm missing?