What do you think about Multi Asset Bond Funds instead of Core Bond Funds

[Glad to be retired]

Right now I have about a million dollars in savings and investments. Retired at age 67 and collecting Social Security for the last 5 years. I am 60% VTI (Total Stock Market) and 40% AGG (Total Bond Market). (Plus about $100K set aside in the bank in cash.)

I have been discouraged by the lack of return from my total bond fund. I was thinking about replacing it with Multi-Asset Bond Funds that take just a little more risk but have averaged about 5% returns over the last five years. (Vs 2.5% returns from AGG (Total Core Bond ETF)

I was told that it is better to be in managed bond funds with experts picking investments from countless different fixed-income options.

Here are some of the multi-asset bond funds I am looking at:

BMSAX
FSICX
PTIAX
PONDX
RPSIX

 

[brokrken]

Have you thought about preferred stocks? Many of them yield 5% and if you spread your money across enough of them you can limit your risk.

 

[Sunset]

With interest rates having been on a decline for about 10 years to a flat level of rate for about the last 5 years, I always wonder have anything that has done fine in the last 5 years will do as rates creep up perhaps 1% per year. ?

You could consider something like BSJM or one of the other Guggenheim bulletshares etf's. they are term limited collections of bonds and at the end of the term you get back your $$. Depending upon which one you pick, they pay out around 5%. So even if interest rates jumped to 11%, you wait and you get back your principal.