Short term industrial bond funds
Good morning, Terry
I’m thinking it was two weeks ago probably 21 August 2024 when you were with John Williams, you were talking about some short term bond funds. I believe they were industrial bond funds from both Fidelity and the other brokerage houses. I was trying to look that up because I have the ability in my 401(k) to move some of the money into some Fidelity accounts and I want to know what term funds I should research.
I’m 57 1/2 and hopping to retire at 59 1/2, currently have over 70% of my 401k in stocks and I’m thinking to should lower it.
Terry Says
That wasn’t me. For my general listening audience I typically stick to the highest safety of short-term T-bills or 2 year notes. Yes, there are short-term bond funds, managed by professionals. And they can give you slightly higher yields. With rates coming down, it makes sense to lengthen maturities a bit. Just be sure you buy a fund that purchases only high-quality bonds. If a recession ever comes — and it will — some companies may have problems repaying their debt, which his why you want to stick with highly rated bonds.
