Roth: I have a different solution that Iíve been using for the last 15 years. Probably 70% of my own fixed income is in certain CDs directly with banks and credit unions that have easy early withdrawal penalties, and that acts like a put. If rates do rise, you pay that small penalty and reinvest at the higher rate. I do have some bond funds and itís a complete myth that bonds are less risky than bond funds. The net present value of the decrease of the cash flow of holding a bond to maturity is equal to the amount that the bond fund falls when rates rise.
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