The Case for Investing in Bonds During Retirement
August 18, 2009
The brief’s key findings are:
- Retirees seeking safe investments generally prefer short-term deposits, which preserve capital but offer no guaranteed return.
- Fluctuating returns can jeopardize a household’s living standard if short-term interest rates fall.
- In contrast, bonds provide a guaranteed return and – if held to maturity – also preserve capital. The bottom line: bonds should be a standard component of any retiree’s portfolio.
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Citation
Webb, . 2009. "The Case for Investing in Bonds During Retirement" Issue in Brief 9-17. Chestnut Hill, MA: Center for Retirement Research at Boston College.
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