Should I consider moving from bonds to cash?
When it comes to your asset allocation, cash is a great option to meet shorter-term spending needs or goals like building your emergency savings. But for your longer-term goals, you may want to consider taking advantage of the benefits bonds bring to a balanced portfolio.
Short-term market-timing moves can put your portfolio at risk because the future path of interest rates is nearly impossible to time. Over the long term, high-quality bond funds have tended to offer better diversification against stock volatility and higher yield potential than cash.
While the road ahead may be a bit bumpy, sticking to your investment plan is an important step toward keeping your long-term goals on track.
Vanguard advisors can help you weigh important decisions and discuss investing concerns. They're here to increase your chances of investment success by helping you invest in short- and longer-term investments that align with your goals, risk tolerance, and time horizon.
