06-29-2016, 12:09 PM
When saying bonds preserve capital, people rarely mention the loss of purchasing power due to inflation. With the stocks I own they may go down during corrections, but generally recover and continue to grow as the dividend grows.
I'm 74 and our dividends more than exceed our expenses, so our capital continues to grow. I would not have bought bonds during our accumulation phase, so why would I want them in retirement (guess if one needed to live off their capital, then there might be some justification).
I would also not buy bond etf's or any etf's. There is no guarantee of capital with bond etf's. We no longer buy or sell which means there are no annual expense fees, regardless how small.
I'm 74 and our dividends more than exceed our expenses, so our capital continues to grow. I would not have bought bonds during our accumulation phase, so why would I want them in retirement (guess if one needed to live off their capital, then there might be some justification).
I would also not buy bond etf's or any etf's. There is no guarantee of capital with bond etf's. We no longer buy or sell which means there are no annual expense fees, regardless how small.