MercyMe
Recycles dryer sheets
- Joined
- May 7, 2022
- Messages
- 234
It appears that many intermediate bond fund yields are lower than YTM's on individual bonds. Like some others, I've become quite interested in Freedom56's thread "Golden Period on Fixed Income Investing", but I'm afraid of getting too deep into something which I know little about. And to get that extra bit of yield, you have to buy callable bonds which brings up the topic of reinvestment risk.
After much research, I did make a few new issue bond purchases recently. However, my AA is still too heavy in cash and I'd like to move most of it into fixed income. It would seem easier to just drop the cash into Fidelity's FLTMX fund versus buying new bonds and dealing with reinvesting of dividends and called bonds. It's not that I'm lazy, but I don't enjoy the searching and analysis process for each bond.
So... What is the overall consensus on buying intermediate bond funds today? Good idea? Why?
I guess this question for me is more specifically about tax-exempt bond funds since purchases now would be in my taxable account (my tax deferred account is already mostly bond funds).
After much research, I did make a few new issue bond purchases recently. However, my AA is still too heavy in cash and I'd like to move most of it into fixed income. It would seem easier to just drop the cash into Fidelity's FLTMX fund versus buying new bonds and dealing with reinvesting of dividends and called bonds. It's not that I'm lazy, but I don't enjoy the searching and analysis process for each bond.
So... What is the overall consensus on buying intermediate bond funds today? Good idea? Why?
I guess this question for me is more specifically about tax-exempt bond funds since purchases now would be in my taxable account (my tax deferred account is already mostly bond funds).