>>>Even something relatively "safe" like the Vanguard Short-Term Bond Fund (VFSTX) had lost 2% of its asset value before the Fed decided to continue the bond buying program a few weeks ago.If you really want to be safe, I'd buy individual Treasury securities or FDIC-insured CDs and hold them to maturity. Mutual funds don't have a maturity date, so you're not guaranteed the return of your principal.intercst<<<Well of course bond/CD ladders are a way to mitigate interest rate risk.My crystal ball is in the shop for repairs. I’m not certain rates WILL rise.FWIW… http://blogs.marketwatch.com/thetell/2013/09/24/treasury-yie... I do know AM will face a capital gains tax haircut (20%+/-) in any non-qualified account.In an IRA, going to the secondary market will entail some hidden costs also. Yes, even at Vanguard.If AM needs to sell before maturity, figure an additional hair-cut. I like and recommend bond ladders but they carry risk also. For safety and security, I-bonds are tops. Oops, Zvi Bodie recommends those…sorry.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra