Talk of The Villages Florida - View Single Post - I just don't get the wisdom of investing in bond funds.
Thread: I just don't get the wisdom of investing in bond funds.
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Old 11-11-2023, 11:48 AM
Robbb Robbb is offline
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Originally Posted by retiredguy123 View Post
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.
On May 1st 2007 BND closed at $74.77, on November 10th 2023 BND closed at $69.68