No. of Recommendations: 1
I made a similar post on an investor beginners board, but was suggested to ask my questions here. I’m new to asset allocation and fixed-income investing -- still got 30+ years until 401(k) distributions are penalty-free for me... OK, I'm new to investing period. But I have done and continue to do my homework and contribute to 401(k) + Roth IRA brokerage account.

My 401(k) has all kinds of products with bond holdings:
- target-date and balanced mutual funds
- money-market funds
However, there isn’t a long-term bond option. So to get some fixed income exposure I got into the money market type of a fund (currently yielding 4%). In the Roth, I have
- SSHYX (junk bonds) with a gain of 9%
- IPE (TIPS ETF) with a loss of 1%
I put in about $250 in each...

Lately, I've been looking at CEF’s such as MIN, ACG and a few others. They're trading at a discount as most CEF's do and offer 8% yields. But in many cases assets and dividends have been declining for the last few years. Knowing that some CEF's can be leveraged I wonder how safe they are and what their long-term prospects are. I'd like to establish a long-term position and reinvest dividends...

So... I’m hesitant to buy bond funds with yields at low levels and prices quite high. But do you agree? Are bonds individually something to consider now? Or that's out of reach for someone with very little to invest? Are funds a yay or a nay? What would be best for an aggressive long-term investor at this stage?

Thanks in advance!
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