Navigating Bond Investments: Funds vs. Individual Bonds

This chapter explores the distinctions between bond funds and individual bonds within a diversified portfolio. It highlights the significance of aligning bond funds with an investor's holding period and recommends a mix of various bonds for optimal efficiency and cash flow management.

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All July long, we’re featuring a special replay series of standout episodes—and this week is no exception.

Join us for a special episode as we welcome Christine Benz to discuss her book, "How to Retire." In a captivating conversation in the Rock Retirement Club, we dive into topics like long-term care, the 4% rule, investing strategies, and simplification. Featuring insights from Fritz Gilbert, a member of the club and contributor to Christine's book, this episode offers a holistic view of retirement planning. Discover how to balance financial and non-financial aspects for a fulfilling retirement journey.

*Episode Originally Aired December 4, 2024*

OUTLINE OF THIS EPISODE OF RETIREMENT ANSWER MAN

(00:55) We are going to play some past impactful episodes for the whole month of July

INTERVIEW WITH CHRISTINE BENZ

(01:28) Today we start off the month with a replay of our interview with Christine Benz.
(03:17) Roger asks about the goal for the readers of this book.
(04:48) Christine: The goal was to cover retirement in a really holistic way and include as much non-financial as financial information on retirement planning.
(06:10) Roger thinks the interview style of the book helped make it more approachable.
(08:13) Roger asks Christine about any big, unexpected insights that came up when she was writing her book.
(11:12) Fritz Gilbert says I give Christine serious kudos for the approach she took and the amount of homework she did.
(12:35) Christine tells Fritz that she loves his methodical approach to dealing with the years leading up to retirement.
(14:16) Marla asks Christine if she would change anything if she was writing this book today to accommodate the 2024 election results and also asks about managing portfolios on Morningstar.
(18:15) Roger says when it comes to portfolio construction, it's easy to overcomplicate things
(21:14) Larry asks Christine what challenges her or confounds her most about her own retirement planning.
(23:35) Larry asks “Are you concerned that we may not find people to provide long term care?”
(31:08) Kevin Lyles asks Christine about asset allocation in retirement.
(37:55) Laura asks: When talking about high quality bond portfolios, do bond funds work?
(42:00) Roger asks about indexes and broad diversification.
(44:37) Roger says someone had a comment related to some of the research on small cap value and asks Christine her view on having a more diversified small cap value tilt?
(48:19) Eric asks “what is the argument for using TIPS (Treasury Inflation-Protected Securities) for retirees?”
(51:28) Roger asks Fritz if he has been simplifying his portfolio or working more on optimization since retiring in 2018.
(53:52) Roger says the optimization part of retirement sometimes dominates the conversation.
(54:44) Roger asks Christine: Have you found in your own life a balance between making sure you don’t get too complicated in investments?
(57:55) Brianna asks Christine what question she has been reflecting on after the 20 interviews?
(58:45) Christine she’s been thinking more about whether the concept of retirement is flawed.