Exchange bond index funds for I Bonds?

[jpdx]

I have 20% of my AA as bonds -- most in intermediate bond funds and some in Series I Bonds to the max extent I can. Bond index funds were purchased at the peak and are of course down significantly. Do you think I should hang on to all these in hopes they eventually recover, or should I exchange some for more I Bonds in January?

[Abe]

I’d probably hold them and if you can, put future money allocated to bonds into I bonds or treasury bonds. Selling at a low point isn’t a good strategy in general.

[mistymoney]

I’d probably hold them and if you can, put future money allocated to bonds into I bonds or treasury bonds. Selling at a low point isn’t a good strategy in general.

What is the case for these bonds recovering lost value?

[AnxietyFly]

My corporate bonds are down, and my short term treasuries are up. You can't really evaluate bonds the same way you evaluate stocks. They are both creating dividend income if they're down or up in value. When they're down I can purchase more for a cheaper value. I wouldn't do any selling right now.

[Wintergreen78]

I Bonds make sense right now, but you are limited to $10k per year. So, I don’t view it as a big decision. If you are close to FIRE, they aren’t going to make up a significant portion of your total amount invested.

I wouldn’t sweat any decisions until you are talking about 10% or more of your total amount invested.

If you are early enough in the process that $10k is a significant percentage, then focusing on total spending and savings rates and developing good habits is more important than allocation decisions.

For the record, I’ll probably buy more I Bonds next year, as part of my total bond amount.

[Heckler]

I found that understanding bonds and bond funds helps me sleep a lot better, and maintain my asset allocation, by buying low (buy more bonds now) and selling high (selling high VTI in January to rebalance to my 30% bond allocation, before the equity plummet of 2022)


Get to the silver lining part...
https://canadiancouchpotato.com/2017/04/13/bond-basics-1-why-bond-prices-fall-when-rates-rise/

Stay the course...
https://canadiancouchpotato.com/2014/07/04/bond-bears-admit-you-were-wrong/

This time isn't different...
https://canadiancouchpotato.com/2013/09/23/how-not-to-prepare-for-a-bear-market-in-bonds/


and if you think Canadian bonds act any differently than US bonds, I'm sure Bogleheads can help you out too.
https://www.bogleheads.org/wiki/Asking_bond_questions

[grantmeaname]

Do you have an investment policy statement?
Why does it tell you to hold bonds?

Can I Bonds help you accomplish those goals? (My answer - probably not!)

[jpdx]

Do you have an investment policy statement?
Why does it tell you to hold bonds?

Can I Bonds help you accomplish those goals? (My answer - probably not!)

1) Yes
2) To stabilize the portfolio
3) Yes. Only 1/4 of my bonds are in I Bonds, leaving plenty of bond index funds available for rebalancing.