Individual Bonds vs Bond Funds - Which is Better for Retirees?

One of the most popular options for retirees is to invest in bonds. But should you buy individual bonds or a bond mutual fund? Which is better?
In this video, we'll take a closer look at the pros and cons of each option so you can make an informed decision.
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0:00 - Intro
0:44 - Individual Bonds Overview
1:06 - Benefits to Individual Bonds
1:18 - Drawbacks to Individual Bonds
1:57 - Bond Mutual Funds Overview
2:11 - Benefits of Bond Mutual Fund
2:39 - Drawbacks to Bond Mutual Funds
3:10 - Which is Better?
4:21 - Link to video of recent losses of bonds in 2022
4:31 - Outro

[@user-ed2yf6ce2d]

You should have mentioned risks of loss. Bond funds lost their shirts in the 2007,2008 financial crisis and in the rising interest rate environment in 2022, 2023. Retirees that needed to access those funds during those times locked in big losses.

[@onedegreeadvisors]

That assumes the bond fund has a greater duration than the individual bond. Secondly, funds such as $BND (not a recommendation) most certainly did not lose their shirt during the GFC. - Alex

[@user-ed2yf6ce2d]

@onedegreeadvisors as you said in your video, if you held the individual bond to maturity then you received your interest and principal. Not so with bond funds. I'm still down thousands of dollars of value in my bond funds. My T Bills and CD's haven't lost a dime. That said, I haven't liquidated my bond funds but if I want to modify that bucket, I'll lock in thousands of dollars loss

[@driger888]

@@user-ed2yf6ce2d if you had bought long term individual bonds you'd still be down wouldn't you?

[@JLW667]

2:58