No. of Recommendations: 0
Hi all,

I am looking for thoughts on the general idea of investing in bonds through funds (specifically index funds). I have read a lot about the problems of bond funds in a rising interest rate environment since they never actually mature. And it seems likebond rates have to rise eventually.

But if you don't use bond funds for the fixed income portion of a portfolio, what do you do? The only other real option I have is to buy CDs (or something similar) in a taxable account. But this creates a tax issue that the bond funds do not have since they would be held in tax deferred accounts.

So...what do people here think? All thoughts are appreciated.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.