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Bogle On Favoring Dividends And Capitalizing Social Security
Seems entirely logical, but I've said this before. Only reason I buy bond funds is when I think they will diversify into foreign markets or are "go anywhere" funds, essentially seeking capital gains or safe high yields. If one's porfolio is large enough that $300K doesn't represent the bond portion you want, obviously you should be buying bonds or bond funds, but I would think one would buy target date funds that will hold their bonds and liquidate at a point so you get all the principal back. As BAC taught me a few years ago, dividends are not guaranteed (fortunately the holding was not large), so mutual funds focusing on dividends, or buying several moderately high dividend stocks in modest to moderate amounts seems safest in my sixties. Must admit that I rarely buy a stock that doesn't have at least 3% dividend.
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Only reason I buy bond funds is when I think they will diversify into foreign markets or are "go anywhere" funds, essentially seeking capital gains or safe high yields.
If one's porfolio is large enough that $300K doesn't represent the bond portion you want, obviously you should be buying bonds or bond funds, but I would think one would buy target date funds that will hold their bonds and liquidate at a point so you get all the principal back.
As BAC taught me a few years ago, dividends are not guaranteed (fortunately the holding was not large), so mutual funds focusing on dividends, or buying several moderately high dividend stocks in modest to moderate amounts seems safest in my sixties. Must admit that I rarely buy a stock that doesn't have at least 3% dividend.