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Do you still expect that to work now that the decade of low interest rates is over? Shouldn't people buy individual bonds instead?
by raccoonDivider 3y ago
Do you still expect that to work now that the decade of low interest rates is over? Shouldn't people buy individual bonds instead?
- bombcar 3y agoThe answer depends on what you are doing, why you are doing it, whether you are in a tax advantaged account, and how you need the money. All of those affect what you should do and what is optimal. https://www.bogleheads.org/wiki/Individual_bonds_vs_a_bond_fund https://www.bogleheads.org/wiki/Individual_bonds_vs_a_bond_f... Reasons for a fund may include ease of management, variations in contributions and times, uncertainty of when the need, and ease of rebalancing. Individual bonds may be more appropriate for a defined liability at a specific time, for a bond ladder, or as a tax minimization strategy.
- misja111 3y agoWho says it's over? The current US fed rate is only at its 50 year historical average now, and most investors expect the fed to considerably lower its rates again this year.
- 2OEH8eoCRo0 3y agoStay the course! https://fred.stlouisfed.org/series/FEDFUNDS https://fred.stlouisfed.org/series/FEDFUNDS