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URL:  http://boards.fool.com/weigh-your-options-carefully-discern-need-versus-27692791.aspx

Subject:  Re: Risks w/ municipal bonds? Date:  5/20/2009  1:57 PM
Author:  AngelMay Number:  27548 of 35357

Weigh your options carefully. Discern need versus want.

jack

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Argh.
Sounds like you are suggesting I keep hundreds of thousands of dollars in a money market at less than 1/2 of 1%.

What, exactly, would stop me from bailing on the GNMA fund any day it struck my fancy to do so? Or any bond fund, for that matter. On any given day I can be out of bonds and into stocks with a few clicks of my mouse button.

I guess I don't see the hysteria (or the tremendous losses) you seem to be alluding to. If the bond market heads south, I'll get out of it. How much can I lose in a bond fun in a single day or week? Do you think the bond market is really that unsafe?

I have to admit I'm very confused to the point of being paralyzed -- and watching my uncommitted hundreds of thousands languish in a money market. Somehow that just seems stupid to me.

I have, by the way, already admitted to easing back into stocks. But at my age (retired) I never want the stock portion of my portfolio to be the major part of my holdings. If people didn't learn a lesson from 1999/2000/2001 and 2008 then they will never understand that thinking. I, however, am a pretty quick study.

I lost more than I can to admit during that bubble-burst in 2000 -- so before the 2008 crash I was mostly out. AngelSpouse was completely out months before it crashed -- so between us we lost practically nothing this time around.

I know I need some stocks for growth -- but I don't want the exposure to be a major one...just in case the market takes yet another nosedive. I'd like to keep what I've worked so hard to get and husbanded through thick and thin for years now.

So when do you expect this bond market nosedive? And how much income will I be giving up to wait for it by remaining in a money market paying nothing? Would it really be a mistake to get what yield I can from a couple of bond funds? There has to be an alternative to .4X % (other than stocks). What do you suggest?

AM, running in a circle...
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