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Author: AcmeFool Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 79733  
Subject: Re: Thoughts on Bond Funds Date: 8/7/2011 10:14 AM
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If you are worried about the 'never mature' part, you might want to look into target date bond funds/ETFs.

Thanks, AJ. It's not the 'never mature' part that worries me; it's really just the fact that this means their NAV drops when rates rise. Even then, I'm not sure it worries me terribly since this is somewhat offset by the purchase of higher rate replacement investments as things pay out and/or mature. As I understand it, the offset is not complete, but if I hold to "average maturity" it gets close. And if I hold much longer (as is likely), then it should compensate even more...at least as I understand things from all the reading I have done.

You might also want to look into funds/ETFs that hold preferred stocks. Although not completely 'fixed income', preferreds do provide a known dividend, like a bond does.

I'll look into this, but I don't know that this is what I would want.

Thanks again!

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