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Where to now St. Peter....

Daves
in Fund Discussions
All of my rollover IRAs and 401k are invested in Bonds Funds, DODIX and PTTDX for the most part. They provided a decent yield for the last several years but were flat this year.
From what I understand, bond funds will take a big hit when the upcoming interest rate hike takes effect. I'm not quite sure what, if anything I should do about my funds. Like most, I would at least like to see several percent per year to keep up with inflation.
I am 63 years old, enjoy my job and should be safe for another 3-5 years of employment. Fidelity runs our 401k and I have access to other funds via a brokerage account.
I know I haven't given near enough info, but are there options out there that might give me decent returns without a high level of risk? Any ideas would be appreciated.
Thanks in advance!

Comments

  • CrashCrash
    DODIX is rock-solid. My thought is to stick it out, and don't be "chasing" returns. You ought to hold a considerable portion of your total in stocks, to keep up with inflation. Bonds are for income, not growth. I'll be 62, next birthday, and I'm about 50/50 stocks/bonds. Ten percent of the stocks are foreign. My bond funds are DLFNX, PREMX and PRSNX. None of them is lighting up any big fires. I just like to see some income coming in, while waiting for growth to "happen." PRDSX is one of my growth-ier names.
  • davfordavfor
    edited December 2015
    You might take a look at VWIAX ( VWINX ). Its one of the best conservative allocation funds with about 60 to 65% in investment grade bonds and 35 to 40% in dividend producing stocks. It will provide you with some potential for growth going forward to go along with the income it produces (currently about a 3% yield). Its been around since 1970. So, its approach has been tested through time.
  • davidrmorandavidrmoran
    >> decent returns without a high level of risk?

    No, not really. It depends on what you mean. Your solid current named funds will achieve neither, most likely, depending on timeframe. In other words they will have moderately serious risk as interest rates rise, assuming they do, and probably also will not deliver decent returns. As Fidelity is smart, if Puritan or Balanced is available to you, I myself would consider either happily, especially the former. Unless you have access to the slightly more aggressive PRWCX, the fave of many here. The Vanguard mentioned are great but tilted in the other direction. GLRBX is very good for in-between-balanced. The point is to add some equity exposure.
  • CrashCrash
    "....The point is to add some equity exposure. " Another prospect is MAPOX. I own that one. (PRWCX is closed to new investors.) It's a "balanced" fund, like PRWCX or DODBX. I cannot control The Fed's interest-rate rises. Investing is a "long, strange trip." Not smooth and level. Tilting toward more equities would be wise, certainly.
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