My bond fund with Fidelity
I have a bond fund that has never made any money but has gone down. I did this for safety., but very unhappy with it. Is it wrong to transfer this money to a money market fund and get over4% for a while?
Terry Says
When interest rates go up, bond prices go DOWN. That’s why you’re losing money. If you want to take the loss (and it is outside of an IRA), you can write $3,000 off against ordinary income — and carry forward any losses against future taxes.
I understand wanting to buy T-bills — currently paying 5.5% for months.
Just understand that whenever — if ever — rates come down, the losses in a bond fund will be recouped.
