Sunday, January 17, 2010

Bond Fund Returns Is A Bond Fund Like PTTAX A Good Choice For My 401K?

Is a bond fund like PTTAX a good choice for my 401K? - bond fund returns

I have 2-5 years of retirement. I am not in cash, because the yield is a paltry 0.12%. PTTAX as pension funds have a yield of 4.73%, and are not sure. Everything I need is a return of 3-5% here. I get the post a bond fund? What is better --- bonds or cash? "Most investors are now in cash, bonds or stocks?

2 comments:

jlf said...

Safer than stocks, that's for sure. The biggest threat to the Yield Bond Fund will raise interest rates, the market value of the bonds, which would reduce the funds held. However, PIMCO is probably one of the best.

mylilbub... said...

The bond yields slightly higher than money markets, and equally safe. The answer is simple, the bonds pay a lot more than money markets. Who cares what the majority of investors going on? Most investors can have 20 years of retirement, it sounds much closer. It is your risk tolerance, and others do not.

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