Unconstrained bond funds are being pitched as a way around rising rates but they don’t seem to be holding up their end of the bargain very well; maybe it’s time to look at individual bonds. Read the article here >>>
For retirees hoping to sleep at night, “laddering” bonds ensures that each year a batch of individual bonds will mature, providing the income needed for that year. There’s another option: defined-maturity bond ETFs, which resemble individual bonds right up to their distributions and maturity dates. But laddering with either ETFs or individual bonds brings its own set of trade-offs. Read the article here >>>
In this Advisor Perspectives article, Professor Wade Pfau of The American College discusses whether investors should purchase bond funds or individual bonds that are held until maturity. We really enjoy this article as Wade touches on many points that we strongly believe in. Click here to read the article >>>
In this letter to the editor of Advisor Perspectives, Asset Dedication’s Stephen J. Huxley, PHD responds to Joe Tomlinson’s article, Retirement Portfolios: Fears over Rising Rates are Overblown. In Steve’s response, he discusses some the weaknesses of the underlying assumptions Joe Tomlinson uses when talking about bond funds in rising interest rate environments. Click here to read the letter >>>