I have a question about bonds and diversification. Do I need bonds? My husband and I have retired early. We have two thirds of our investments in dividend stock (20 holdings from II recommendations), one third in real estate, mostly rental houses. We have cash for the next three years but our dividends and rental income are about equal to our yearly expenses. And, yes, we did factor in inflation. And eventually, Social Security will kick in. I have avoided bonds because the interest rates are so low now that when it goes up the value of the bonds would go down. I elected to go dividend stocks instead. So, do I really need bonds to be diversified or is the stock/real estate mix good enough?
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