UnThreaded | Threaded | Whole Thread (32) | Ignore Thread Prev | Next
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 76418  
Subject: Re: Thoughts on Bond Funds Date: 8/7/2011 10:14 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
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!

Acme
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (32) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
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.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement