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Rethink Your Bond Strategy For Retirement

Monday, May 13, 2013 - 1:48 PM
From MarketWatch:
The pundits would have us believe that the bull market in bonds is over. That bond prices have nowhere to go but down and yields up.

...Overbought and terrible investments as bonds might be, the market doesn’t seem as convinced.

... In other words, bonds might not be the best investment, but the looming bond losses predicted by Fuss, Buffett and others might be a long way off. If that’s the case, what should those planning for or living in retirement do with the money they’ve allocated to fixed-income securities?

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pearlbrownpearlbrown1,431 posts since
Nov 2, 2010
Rep Points: 6,249
1. Monday, May 13, 2013 - 4:27 PM
From MarketWatch:
The pundits would have us believe that the bull market in bonds is over. That bond prices have nowhere to go but down and yields up.

...Overbought and terrible investments as bonds might be, the market doesn’t seem as convinced.

... In other words, bonds might not be the best investment, but the looming bond losses predicted by Fuss, Buffett and others might be a long way off. If that’s the case, what should those planning for or living in retirement do with the money they’ve allocated to fixed-income securities?'''

Reply to pearlbrown:
 Diversify across numerous fixed income asset classes, just like you would do with equities. Also, be mindful of the average maturtiy and duration of bond funds. If willing to assume a little more risk, consider REITS, MLPs, and dividend "rich" stocks, but be wary of securities with yields substantially higher than those of comparable securities in the same asset class. Don't do anything unless you are comfortable with the risks involved, and don't invest in anything you don't understand.





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2
WilWil242 posts since
Feb 26, 2010
Rep Points: 1,285
2. Monday, May 13, 2013 - 5:12 PM
That's sound advice, Wil, especially the last sentence. 
3
pearlbrownpearlbrown1,431 posts since
Nov 2, 2010
Rep Points: 6,249
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