NJBlue, I agree with you totally. But the value of the bond fund may well be depressed due to factors beyond the selection of the bonds by the fund manager. Interest rates and inflation can raise havoc on bond funds, but buying and holding a bond or a ladder of bonds to maturity pretty much eliminates those risks, especially with government TIFs. I'm looking for protection from inflation and to avoid principal erosion over the next few years. The rates on TIFs are not great, but I'm seeing world problems on the horizon that could have a negative impact on my retirement security, and I don't think bond funds will give me the security that I need.
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