The only bond fund offered in my 401k is WACPX. Currently it makes up 45% of my 401k. The only other fixed income offering is a new stable value fund (less than 1 yr old) which yields a bit less.
WACPX currently yields 5.2%. Morningstar has just dropped WACPX's rating from 4 stars to 3. I am concerned due to the current economic climate in the bond theater. I am 57 and will retire in 2 years. Should I consider moving some money out of WACPX perhaps into the stable value fund or into a target retirement income fund? Thanks for your replies.
Here are WACPX's bond holding ratings along with it's benchmarks:
AAA 76.17 63.33
AA 2.60 6.64
A 4.22 10.00
BBB 8.35 12.66
BB 5.26 2.97
B 3.13 1.96
BELOW B 0.22 0.39
OTHER 0.05 2.06
Averages:
Maturity 7.50
Duration 4.80
Credit Quality AA
I will be rolling this 401k over to Vanguard at retirement. It makes up 80% of my total retirement savings.
WACPX currently yields 5.2%. Morningstar has just dropped WACPX's rating from 4 stars to 3. I am concerned due to the current economic climate in the bond theater. I am 57 and will retire in 2 years. Should I consider moving some money out of WACPX perhaps into the stable value fund or into a target retirement income fund? Thanks for your replies.
Here are WACPX's bond holding ratings along with it's benchmarks:
AAA 76.17 63.33
AA 2.60 6.64
A 4.22 10.00
BBB 8.35 12.66
BB 5.26 2.97
B 3.13 1.96
BELOW B 0.22 0.39
OTHER 0.05 2.06
Averages:
Maturity 7.50
Duration 4.80
Credit Quality AA
I will be rolling this 401k over to Vanguard at retirement. It makes up 80% of my total retirement savings.