No. of Recommendations: 4
I think Charlie and Chris are talking past Hack—even though I think others should listen to what they say.

Hack is not talking about newly putting money into a bond fund, He is talking about rolling over an existing bond fund, and wondering whether to stick with the same fund (Total bond Index) or move to a slight variant (Intermediate bond Index).

This returns us to a much broader issue with bond funds, one we've discussed in the past: how do we weigh potential yields on a fund against potential volatility.

I'd look at the yields on the two funds going back as far as possible (information available on annual reports: I have them downloaded, so I'll see if I can find on my next cup of coffee), then look at the charts to see how much each of the funds is currently above its long term average NAV. Given that this is a retirement account, I'd probably roll over to the same fund, for the time being, then think about switching to the other, if it seems to have higher yields, when the NAVs warrant.
Print the post  


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.
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.