Again, just be sure to realize that what you have is a BOND FUND. Not an individual bond. It will "never" mature. The fund managers will consistently buy and sell various bonds to always keep the average maturity and duration within specific parameters.Thank you for your replies.
Yes, my purpose is to keep things very simple.
To answer your question regarding what I was hoping to accomplish with a long-term bond. Well in my readings, talking to people, my plan was to buy and leave it alone. Given my age of 40, I had no need of those funds whatsoever and was comfortable leaving it until age 55. But perhaps I did not entirely understand the concept that long-term bonds are actually riskier. Which even now, I think I am comfortable with the idea of what's done is done as I won't be touching it anyway prior to maturity.
Yes yes, what I have is a bond FUND indeed; not an individual bond. I am also only looking into bond FUNDS; not individual bonds. Apologies for not being clearer. After this entire discussion from my initial post, I am now trying to figuring out if I should just get rid of my long-term treasury bond FUND (FNBGX) NOW and go with an intermediate treasury bond FUND (FXNAX) as I am 40 years of age now. Or should I just let things be in FNBGX whatever is already in there, and anything moving forward, just go with FXNAX.
Statistics: Posted by hotsauce — Sat Jan 04, 2025 11:41 am