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No. of Recommendations: 1
Bond funds may be safer (as measured by volatility) but are not necessarily so. Each bond fund is different and some are holding bonds that have appreciated by well over 40% - which means those bonds are garuanteed to lose those gains of their value drops as rates go up and as those bonds approach maturity. On a risk-adjusted return basis, there are probably quite a few bond funds that are worse than stock investments - especially looking forward.

What will happen in 5 years? Will he liquidate those holdings? Use them for income? His timeline would be the most important part of this.

Give us a few of the bond funds and tell us what is likely to happen when he gains access and we will be able to better respond.
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