Q: With interest rates so low is investing in bond funds a bad idea at this time?
A: This is a great and popular question with interest rates in record-low territory.
We believe that bonds still serve a purpose in a portfolio, but it is important to own the right types of bonds. When government bonds are not infavor, there are other types of bonds that might be. Given the likelihood of interest rates rising at some point over the next decade, it might not be a good idea to build a portfolio of ONLY bond funds, but knowing your risk tolerance, time horizon, return expectations and long term needs is important before absolutely answering this type of question.