Make a guess

[lawman]

VFIDX is an investment grade corporate bond fund..It closed today at $9.29 / share....I assume that the price reflects some number of expected interest rate increases and has priced that in.. I think it has a duration of around 6 - 7 years..It's yielding around 2 - 3%. I will need to sell that within the next 4 years.. Should I sell now or later? I know no one here has a crystal ball but I'm looking for a consensus..Thanks

 

[Lsbcal]

In the last two rate hike periods VFIDX did very well relative to some other bond fund alternatives. This time could be different but to me it seems an excellant choice. No guarantees on timing of course.

 

[VanWinkle]

I'm holding similar bond funds in duration(6-7 years) and I will start drawing the funds in 4.5 years. I would like to reduce the duration, but now is likely not the best time. I usually match duration to when the funds are needed, but I will only be taking what is required by RMDs at that time so much of the bond funds have a longer window than just 4.5 years.

VW