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Ever the contrarian, I don't like bond funds a bit. They are volatile and risky, the more so at current low interest rates. When (not if) rates start to rise, the bond funds will all take a bath.
Buy bonds themselves, as you will eventually get your principal back, but avoid the funds, for you surely will lose money there.

As a surrogate for bonds, consider CD's with banks or other institutions. You can get 4% or better on five-year CD's.

cliff
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