UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 173  
Subject: Re: "Done" Date: 8/2/1999 8:48 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0

Next question: Is there ever a need for bond mutual funds if you do not need the
"somewhat steady income" they provide. Folks keep talking about diversification
being the primary factor of bonds in a portfolio.

The bonds (any fixed income investment) are also for safty. If the market drops and your fixed income does not (or maybe drops less)you should feel better and hopefully ride out the stock market drop.

You might think of fixed income investments as the money you will spend in the next few years and that it will be replenished from the sale of stocks when stocks are up. A mutual fund is not well suited for this. You want securiteis that are maturing at face value. I think your "income" should come mostly from selling stocks. The fixed income investments just hold the proceeds (maybe for several years) from the stock sale until you need to spend the money. By the way, a money market is a fixed income investment.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next


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.
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 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.