Q: All I hear and read says “sell and get out of bonds”. I am 77 and most of my portfolio is bonds. Getting out is not an option for me. I have $100,000.00 in Vanguard Total Bond Fund (IRA). Would it be alright to put half of that into the short-term bond fund?
A: This is a great question that continues to pop up. I can’t give very specific advice but I should be able to help give some general guidance. If rates continue to move higher you may want to look into the short term bond fund you mentioned. Also, you could consider floating rate bonds, international bonds, and energy related income investments (Royalty Trust and MLPs). These investments provide current income but should also offer some inflationary hedges.
I hope this helps… If you ever want to come in for a free one hour consultation we can take a look at your portfolio and maybe offer some more specific advice.