You should have mentioned risks of loss. Bond funds lost their shirts in the 2007,2008 financial crisis and in the rising interest rate environment in 2022, 2023. Retirees that needed to access those funds during those times locked in big losses.
That assumes the bond fund has a greater duration than the individual bond. Secondly, funds such as $BND (not a recommendation) most certainly did not lose their shirt during the GFC. - Alex
@onedegreeadvisors as you said in your video, if you held the individual bond to maturity then you received your interest and principal. Not so with bond funds. I'm still down thousands of dollars of value in my bond funds. My T Bills and CD's haven't lost a dime. That said, I haven't liquidated my bond funds but if I want to modify that bucket, I'll lock in thousands of dollars loss
You should have mentioned risks of loss. Bond funds lost their shirts in the 2007,2008 financial crisis and in the rising interest rate environment in 2022, 2023. Retirees that needed to access those funds during those times locked in big losses.
That assumes the bond fund has a greater duration than the individual bond. Secondly, funds such as $BND (not a recommendation) most certainly did not lose their shirt during the GFC. - Alex
@onedegreeadvisors as you said in your video, if you held the individual bond to maturity then you received your interest and principal. Not so with bond funds. I'm still down thousands of dollars of value in my bond funds. My T Bills and CD's haven't lost a dime. That said, I haven't liquidated my bond funds but if I want to modify that bucket, I'll lock in thousands of dollars loss
@@MikeM-l2n if you had bought long term individual bonds you'd still be down wouldn't you?
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