No. of Recommendations: 0

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

I don't mean to be absolute in suggesting this. I want you to be aware of your options and current conditions. I want you to be aware of the risks before you step out. I don't know how closely you monitor your positions and trades.

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.

There is nothing keeping you from doing this. The idea, in of itself, is not a horrible one as long as you are going in with eyes open. ETFs make better vehicles for this kind of approach. More traditional funds occasionally have weird restrictions to keep people from trading them.

Do you think the bond market is really that unsafe?

In the past the bond market tends to unwind relatively slowly. This time there is unprecedented money stashed in bonds and other debt. I don't know how fast it will move. Which is why I suggested you back of napkin how long you think you may be in these funds. If you don't plan on being in them vary long your benefit would be pretty limited.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.