Yield, duration, taxes: The bond fund basics that could protect your retirement income. Shutterstock
Bond funds are often a great choice to provide income and reduce volatility in a portfolio, but evaluating them requires more than looking at yield alone. When used thoughtfully and especially in retirement, bond funds can provide steady income and stability.
However, bond funds are not savings accounts. Their prices move, distributions fluctuate, and behavior depends on interest rates and credit conditions. Unrealistic expectations might lead to emotional reactions during market swings.
