Hi,
I'm 42 and about three years ago started adding to the bond portion of my 401K and Roth/IRA's using total bond funds. My wife and I are each 90%/10%. My question is why am I adding to bonds when I could be just leaving that 10% in cash in MM funds and getting 4-5%?
My bond funds are all down 5-8% over the three years and if I had simply done cash, I would have been way ahead. I understand DCA with stocks(buy low, etc). Is it the same theory with bond funds? I feel like an idiot having gone into bonds at 40 years old to see them get hammered.
For info, my plan is to increase bond holdings 1-1.5%% per year through age 65.
I'm 42 and about three years ago started adding to the bond portion of my 401K and Roth/IRA's using total bond funds. My wife and I are each 90%/10%. My question is why am I adding to bonds when I could be just leaving that 10% in cash in MM funds and getting 4-5%?
My bond funds are all down 5-8% over the three years and if I had simply done cash, I would have been way ahead. I understand DCA with stocks(buy low, etc). Is it the same theory with bond funds? I feel like an idiot having gone into bonds at 40 years old to see them get hammered.
For info, my plan is to increase bond holdings 1-1.5%% per year through age 65.
Statistics: Posted by jayboss — Tue Jun 25, 2024 9:03 pm — Replies 1 — Views 183