No. of Recommendations: 4
RedSox2004 you are doing the most important thing with regard to your retirement - thinking.

In my view, you may be looking at things in correctly. You do not provide enough information.

The fixed income holding world should be very different for somebody within 4 or 5 years of depending on their portfolio for money vs. somebody with 10 or more years. Between 5 and 10 years that depends.

Based on the comment your are considering D&C Income fund I suspect you are view bonds as an income/growth source. The experts generally say the purpose of bonds is risk reduction -- i.e. if the S&P drops 40%, bonds will not. So you can live off the bonds instead of having to sell the stocks you bought at a price much higher than the market.

Take a serious look at a graph of the S&P 500 from 2000 through 2018. Sure everybody wants growth, but as bad as 2008 was, it was not years to recover from that price drop.

Take a look at any interest sensitive investment return over any period since 1980 through 2018. Bond rates have been falling generally. That has given bonds a big boost in returns/income for the last 35 or so years. That is not likely to happen again. Rates may begin a climb or just work up and down in a range. They are not going to have a general downward trend.

If you opt for bonds as risk protection, you can put your bond money into short (or ultra short) term bond funds. Another option is puts 5% of your portfolio in a money market. Returns are crap, but those funds will cover market downturns so you are not forced to "Sell Low". We use this approach.

If you really want income from your fixed income, look at some Junk Bond Funds -- a few funds have "high quality" Junk bonds. They give returns that have more than paid for their taxes. They do provide some risk reduction, but not as much as government bonds. I am 76 and choose to have 35% in fixed income. In addition to my 5% in a money market, most of the rest of my fixed income is in VWEAX. This on is very different than funds that invest in shale oil or Porto Rican bonds. If you decide to try this - you need to do your homework.

For homework generally on mutual funds, my Go To place is Morningstar.
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