.Bonds are supposed to be the "plain vanilla", easy to understand, rock solid part of a person’s portfolio. As a person enters retirement, bonds have tended to play a bigger role.John Bogle, founder of Vanguard, always gave the advice to put “your age in bonds.” If you're 60, sixty percent in bonds, forty percent in stocks.
What Mr. Bogle had in mind was a solid, high quality collection of bonds, and bonds only.
Today, many bond funds are adding derivatives, junk bonds, and futures contracts in what are known as “un-constrained” or non-traditional bond mutual funds The risk is HIGH, the rewards... not so much. And worse yet you may own one and not even know it!! Then estate attorney Richard Dwornik joins us for the Q & A. MASTERING MONEY IS ON THE AIR.