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 11-13-2023, 11:31 AM
DAVES DAVES is offline
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Originally Posted by collie1228 View Post
Is that true? If I keep the bond to maturity, I don't care a bit what it's value is on a bond market. I get paid the principal. What am I missing?
Like everything else no shortage of opinions. Also, no shortage of people willing to sell you advice. A fund. You invest in a fund. You risk YOUR MONEY. A fund manager. Whatever the management fee is. It is a BUSINESS. They do not work for free. Your return is NOT guaranteed. I can be negative. The return for the manager and team is a percentage of the money they can convince people to allow them to manage.even if investors lose money.

As far as what am I missing, the investor pays TAX on dividends, at your top tax rate and there is the hidden tax of INFLATION. It can be looked up. How much in dollars does it take to buy what a dollar could buy fifteen years ago or five or one or??????