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reformist2

(9,841 posts)

1. For safety, find the shortest-term bond fund you can find.

Reply to still_one (Original post)

Thu Jun 13, 2013, 08:05 PM

Jun 2013

When interest rates rise, long-term bonds go down a hell of a lot more than short-term bonds. A rough way to measure potential losses/gains by the maturity of the bond. When interest rates rise 1%, for example, a 5-year bond will drop by roughly 5%, but a 20-year bond will drop roughly 20%!

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So what is a person to do if their 401k plan only offers funds in stocks or bonds? If interest [View all] still_one Jun 2013 OP

For safety, find the shortest-term bond fund you can find. reformist2 Jun 2013 #1

I agree, if you need a safe harbor badtoworse Jun 2013 #3

You have the right to rollover whatever balance you have (with some limitations) to an IRA Chan790 Jun 2013 #2