Ask Terry Questions Investment allocation – Bond Funds

Investment allocation – Bond Funds

By Terry Savage on September 26, 2023 | Investments

My tax shelter investments follow a simple format of Index funds of total market stock & bond mutual funds. Understanding the bonds are designed to provide security against the volatility or large swings in the stock market, while providing some stable returns. My question is with the Bond mutual side of the investments and the current markets. Should I consider moving some of the Bond index mutual funds over to other stable type investments. Maintaining the security of this side of my overall allocation but trying to provide some interest or gains for this money while bond mutual funds seem to be going nowhere . If so, any specific investments I should consider?

Terry Says

Share prices of bond funds rise when interest rates FALL. And share prices of bond funds fall, when interest rates RISE!
I don’t know what kind of bond funds you’re using — the credit quality, maturity, management of your funds. But you should at least understand this basic principle — because it applies to ALL bonds, even U.S. government bonds.
I think it’s time you sit down and talk with your broker/advisor to learn what you have.
OR, get a fee-only FIDUCIARY advisor who is not trying to sell you anything. Do that through this link:



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