Wiggins, you make a distinction between 18 month treasuries and bonds. I assume your bonds are intermediate duration corporate bond funds? How would you compare reinvestment risk with CD’s to interest rate risk with your bond funds? Do you need to periodically sell your bond fund to generate cash for living expenses or an RMD? Thanks.We are retired and reduced our AA to 65/35. We are going out 18 months in treasuries for lumpy expenses that we expect to have. The rest is staying in stocks/bonds.
If you are shifting entirely away from stocks to preserve the portfolio, then your strategy would be subject to reinvestment rIsk. What will you do when the CDs mature and the new interest rate is 2.5%?
Statistics: Posted by artbuc — Tue Jul 02, 2024 3:34 am