The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: retireatbirth on January 28, 2018, 07:37:32 PM
-
I'm shifting my asset allocation from 100% equities to about 90/10 and I'm researching bond funds at Fidelity. My elementary understanding of bonds tells me that short term funds are a better choice in the low rate environment as these bonds will mature quicker and higher yield bonds will enter the fund after a short term dip in price if rates rise. I have no clue about bonds though.
Also, I should point out that it was in my plan all along to shift to some bonds as my portfolio matured, not because equity prices have risen.
https://www.fidelity.com/mutual-funds/fidelity-funds/why-index-funds
Fidelity Inflation-Protected Bond Index Fund View Fund View Fund
Fidelity Intermediate Treasury Index Fund View Fund View Fund
Fidelity Long-Term Treasury Index Fund View Fund View Fund
Fidelity Short-Term Treasury Index Fund View Fund View Fund
Fidelity U.S. Bond Index Fund View Fund View Fund
Fidelity Short-Term Bond Index Fund NEW View Fund View Fund
-
What are you trying to achieve? I use FSITX in my tax deferred accounts and FTABX in my taxable accounts. The former is just a total bond market fund and the latter is for municipal bonds.
Sent from my iPhone using Tapatalk
-
Even though I know this will bring out the ideologues in force, I prefer the actively managed FTBFX (Fidelity Total Bond) for my bond holdings. My retirement US stock holdings are 100% in the total stock market index. Note that I do no use FTBFX, but rather a lower cost share-class version of it.
Of the funds you mentioned FBIDX (US Bond Index Fund) is the broadest most diversified. That is the one I would use.
-
What are you trying to achieve? I use FSITX in my tax deferred accounts and FTABX in my taxable accounts. The former is just a total bond market fund and the latter is for municipal bonds.
Sent from my iPhone using Tapatalk
Two goals. In my taxable, I want a muni fund as an extended emergency fund. I bought FHIGX for that, but now I'm thinking of switching to a muni fund with shorter duration. FHIGX average duration is 7 years.
In my IRA, I want a bond fund to reduce my portfolio volatility and position myself to buy a dip in equities. I'm becoming convinced this should be a shorter duration bond fund as well based on what I've read. I wasn't sure if the MMM community looked differently at the argument around buying short duration in a rising rate environment.
So, my current thinking is FSTFX for munis short and FNSKX for bonds short.