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I don't mean to sound like a dolt, but I've been trying to get a better understanding of why so many folks think bond funds are not as good as laddering CDs. It would seem that the major reason is the risk of having to sell shares of a bond fund at a time when the NAV is lower than when you purchased the shares, due to the fact that interest rates had risen since the time of purchase. Is this the main reason why folks prefer laddering CDs to purchasing a bond fund? For myself, I soon will cease to have any earned income. I've been partly to mostly retired for 8 years now, doing a little part-time consulting. Up until now, I've been around 92% in equities, but I've started to shift money in the IRA portion of my portfolio into fixed assets (Treasuries). My goal is to get around 30% or so in fixed assets, on the short end. If interest rates ever get really high again, then I would move it into the long end. My portfolio is large enough so that I can live off the distributions from the taxable side of my portfolio. The most I would ever take from the IRA would be the interest, and probably not for many years. Even if the market were to drop considerably, I wouldn't be in trouble from a cash flow standpoint. Bottom line: In such circumstances, isn't a bond fund in my IRA about the same as laddering CDs in term or income and risk?
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