I'm new here and looking for a little clarification. After reading all the posts in this topic, my basic instinct seems to be confirmed.
I'm a few years from retirement and in the process of reorganizing my IRA. From everything I read, it seems that it would be prudent to have some part of it in short term bonds for their 'safety.'
What's confusing me is that bond funds, individual high quality bonds, money market funds, and short term CD's all seem to be returning just about 5% (even after fund expenses). A lot of research and a little bit of risk, in other words, might at best return only a few basis points more (and possibly less), a fairly insignificant amount on the approximately $15,000 that I'm talking about.
Is there any real reason for me to forego the liquidity of the MMF I'm currently in, or the FDIC protection of a CD in favor of bonds? It appears not, but since I never really thought about bonds before, I'm wondering if there's something I may be missing.
Thanks for any help you can give.