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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I tend to look at it differently. If I need a cash stream to cover my expenses bonds are good if you don't need your principle immediately. Look at a Bond investment today and because of their prices one can get anywhere from 5.0% to 9.0% on your money for the entire term of the bond. When that bond matures you get back the PAR value of that bond, not what the market is pricing it at. Actually makes sense if you are interested in cash flow and don't need to sell immediately. All comes down to timing of your needs.