No. of Recommendations: 4
Both Wendy and Loki tend to ignore the convenience of bond funds in their zeal for CDs and individual bonds. Those require a lot more fiddling than you might want, and getting your money out can be costly if the instrument is not held to maturity.

I fail to see how a bond fund is any more convenient than a CD ladder. I'm not zealous about CDs, or anything else. I think people need to weigh liquidity, after-tax yield, risk, and potentially capital return in judging which bond/fixed-income asset to choose. Bond funds are subject to interest rate risk, which is not true if you ladder bonds or CDs and hold to maturity.
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