UnThreaded | Threaded | Whole Thread (23) | Ignore Thread Prev | Next
Author: wrongnumber One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35930  
Subject: Re: Diversifying Date: 1/4/2011 6:10 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
Thank you everyone for your input. A light bulb went off during reading and I realized that what folks are saying is that, if you hold a bond to maturity, you do not have any interest rate risk. You will collect your coupon and receive your principle at maturity (barring a default). You would only have interest rate risk if you planned to sell the bond prior to maturity. Therefore, the only reason to buy the RYJUX fund is if you want to speculate on an increase in interest rates, which we may be expecting but have no idea as to when.

I also appreciate the counseling about whether I should learn bond investing. I am more comfortable at this point with equities. However, I am 60 yrs old and retire from my current job in June. Therefore, I am reluctant to commit all of my portfolio to equities. Also, I have a strong aversion to mutual funds/ETFs because they often have to buy when the retail investors are buying and sell when the retail investors are selling (read: buy high/sell low). I will be thinking more about this over the next few months.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (23) | Ignore Thread Prev | Next


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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.