Personal Investments • Still Trying to Understand Bonds

Bond funds have a place for an awful lot of folks.

They just get shepherded into them and I suspect a lot of them really don't understand bonds. And when someone does ask why after getting burned, they get told why did they invest in something they didn't understand. No thanks.

You are so absolutely and completely wrong. Do what you want to do in your own investing, but stop casting aspersions on the way the rest of us invest. I am in bond funds because I want to be in bond funds. They meet my needs. I don't want a bond ladder. I understand my investments.

I wouldn't say shepherding is completely unfair.

Most (all?) 401k plans have bond funds in a few different flavors, little to no ability to buy individual bonds, and sometimes no stable value or cash alternative.

Example: my current 401k plan offers only a TBM bond fund, a high yield bond fund, and international bond fund flavors.

And then we have the BH mantra of the Three Fund Portfolio.

Statistics: Posted by watchnerd — Thu Apr 25, 2024 7:14 am — Replies 44 — Views 2716

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