Quote:
Originally Posted by Robbb
I was just looking at returns over the past 15 years, If you invested $1,000 in Vanguard Total Bond fund it would be worth app $931, today, after all interest was reinvested. If you invested that same $1,000 in Vanguard VTI, Total market fund, it would be worth $2,090 today.
As pretty much a Boglehead in investing I'm really starting to question the wisdom of investing in any bond fund.
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Your numbers are not correct. My traditional IRA has been totally invested in two bond funds, The Vanguard Total Bond Market Index Fund and the Vanguard Short Term Bond Index Fund. I retired in 2007, and I have not touched (added money or withdrew money) my IRA until last year when I started taking my RMD. From January 1, 2010 to January 1, 2022, my IRA has increased in value by 43 percent. I think you need to recalculate your numbers. Yes, the stock market will usually produce higher returns, but I already have 40 percent of my investments in the Vanguard S&P 500 Stock Index Fund. I believe in having a diversified portfolio.