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I am thinking of switching my bond funds to close end bond funds. Since they use leverage, so far my studies have shown they beat regular bond funds by about 1.5% a year annualized. I will take discounts to NAV into account when buying them.

This will be in addition to buying preferred stocks.

The only downside is they are more volatile.

I am thinking of keeping some spending money in short term govt. bond funds, so I don’t have to sell at the bottom, if we have a crash.

Any thoughts on this strategy?
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