UnThreaded | Threaded | Whole Thread (15) | Ignore Thread Prev | Next
Author: JLC 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 74759  
Subject: Re: Thinking about retirement...plans Date: 1/31/2004 1:01 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
<< I personally wouldn't invest in a bond fund either, just as much risk as an equities fund, thus would opt for the fixed income/money market if possible. >>

This is incorrect. Bond funds do NOT have as much "risk" as equity funds . . . .

I probably needed to clarify myself.

Many people think bonds/bond funds are lower risks because it is not as obvious that you can lose your principle. The important point to remember, bonds are only as good as the company the writes them. Companies go bankrupt or default on payments. Nothing is guranteed. Therefore, since bonds can lose value/principle, IMHO, there is as much risk as equities. I'm sure Enron and WorldCom bonds looked good at one point. Underlying company went down, so did the value of the bonds. A bond fund itself can lose per share value just with an increase in interst rate despite investing in the best bonds available. So no protection there either.

If one is looking to protect principle of look for a steady income, one should be in CDs, T-bills, or money market fund. That was more the point.

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (15) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
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:
Tax Strategies

TMFPMarti-Feeling Good
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.