Keep worrying about corporate bonds you own and the specter of inflation? What will happen to the value of the bonds when interest rates go up?
You get that protection in the form of diversified, low-cost bond funds with shorter duration, that reinvest their income.
I constantly refer to duration, which the financial media unfortunately and ignorantly tends to overlook.
The duration should match the period you intend to hold the bond funds. ( See the Earl J. Weinreb NewsHole® comments.
No comments:
Post a Comment