November 7

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Best Bond Funds for Retirement

By Mac McLean

November 7, 2020


What are the best bond funds for retirement?

Right now, you’re probably wondering, “what are the best bond funds for retirement?”

Unfortunately, like just about every topic we’ve covered in this blog, we can’t give you this answer because it does not exist. Every soon-to-be retiree has their own, unique set of retirement planning goals, their own tolerance for risk, and their own personal set of values that guide their decision when trying to figure out which entity they want to loan money to and for what purposes.

Sitting down with a certified financial planner to discuss your options is the best way to pick the best bond funds for YOUR retirement. Luckily, you can sign up for a retirement planning workshop from PlanningCommunity.org by clicking here and meet someone in your area who can get you started.

Next Steps: Making an estate plan can be overwhelming. We recommend attending one of our educational events. This tool will find one in your area.

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 • Answer these few easy questions about your current situation.
 • Sit back while our tool searches for educational events in your area. It only takes a minute.
 • Select a date and time that works for you and register to reserve your seat. At the event you will be able to get all of your questions answered by a local estate planning expert.

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But wait, because we can still help you out here too….

While we can’t tell you the best bond funds for your retirement, we can, however, give you a few pointers that will help you and the financial planner you meet with plan your next move.

Here are three types of bond funds you might consider adding to your retirement portfolio and a few examples that might help you think about where you wanted to go.

  • Treasury Bond Funds – Bonds backed by the federal government or its agencies make up 90 percent of treasury bond funds, which are also known as long government funds. They are extremely secure because the U.S. will probably not welch on its debts, but these investment products do carry some level of risk because they’re sensitive to interest rate fluctuations.
  1. PIMCO Extended Duration Fund (PEDIX)
  2. Vanguard Long-Term Treasury Fund (VUSTX)
  3. PIMCO Long-Term U.S. Government Fund (PFGAX)
  • High-Grade Corporate Bond Funds – Corporate bond fund portfolios invest more than 65 percent of their assets in corporate debt. They are a little riskier than treasury pr long government bond funds, but usually offer a greater rate of return.
  1. Federated Hermes Corporate Bond Strategy Portfolio (FCSPX)
  2. SEI Intermediate Duration Credit Fund (SIDCX)
  3. Payden Corporate Bond Fund (PYACX)
  • Municipal Bond Funds – Like treasury bond funds, municipal bond funds or munis are extremely secure because they feature debt issued by a city, county, or state government. The interest you receive from these investment products is also tax exempt, which means they’re an extremely attractive option to consider for wealthy investors.
  1. iShares National Muni Bond Fund ETF
  2. VanEck Ventures High Yield Muni ETF
  3. Vanguard Ohio Long-Term Tax-Exempt Fund

Remember, though, that this list of the best bond funds for retirement is no substitute for sitting down with a certified financial planner and figuring out the best course to take when it comes to managing YOUR retirement investments. Start that process today by signing up for a retirement planning workshop by PlanningCommunity.org,

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