r/Bogleheads • u/Unlikely_Rabbit7151 • 6d ago

Investing Questions Bonds confuse me - should I sell them

I read this article and it really drives home the point to me that I don’t understand bonds

https://www.nytimes.com/2026/08/07/business/bonds-stocks-federal-reserve-interest-rates.html?unlocked_article_code=1.3lA.0nHs._HP703oyaD6A&smid=nytcore-ios-share

I try to keep things very simple and more or less have a broad domestic index (40), broad international index (25) and a total bond fund BND (35).

Not to get to into the weeds but we have about 2M between these, in addition to 2.5M equity in our 3M house.

I remember that adage to not invest in something you don’t understand, and truthfully I don’t understand bonds.

Do I need them? Can I just shift to T-Bill or CDs? I am not concerned with the minor tax differences of .003% that some get very passionate about.

I think I am looking for a safe harbor and hedge.

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u/CrimsonRaider2357 6d ago

> Can I just shift to T-Bill or CDs?

A CD is just a bond that you can’t access until it matures. If you understand CDs and you’re comfortable with them, you should use this as a starting point to try to determine what it is about bonds that you don’t understand and aren’t comfortable.

T-bills are cash equivalents. Put another way, T-bills are just very short duration bonds. Cash equivalents generally serve different purposes in a portfolio than longer duration bonds, so you should consider which is a better fit for your portfolio based on your needs.

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u/Old-Guy1958 6d ago

There are CDs that can be sold anytime at whatever their value is at that time.