2025 BND Returns--and future implications

u/ultra__star · Reddit — r/Bogleheads · January 06, 2026 at 14:26 · ⬆ 21 pts  | View on Reddit ↗
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Commenter argues retirees should favor bonds over cash because bonds currently yield 4-5% and have historically outperformed stocks in certain periods.

BND — LONG The author argues that retirees needing ten years of conservative assets should hold bonds rather than cash, since treasuries or municipal bonds currently yield 4-5 percent. They cite 2000-2015 when the total bond market index returned 5.44% versus 4% for the S&P 500. No specific risk is mentioned.

In retirement, why would a retiree who is pulling from their portfolio, and wants ten years of expenses in conservative assets, sit on cash as opposed to treasuries or municipal bonds paying 4 to 5 percent in this current environment? There is no reason for them not to.

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u/ultra__star Reddit r/Bogleheads
Retirees should prefer bonds over cash
The author argues that retirees needing ten years of conservative assets should hold bonds rather than cash, since treasuries or municipal bonds currently yield 4-5 percent. They cite 2000-2015 when the total bond market index returned 5.44% versus 4% for the S&P 500. No specific risk is mentioned.
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This Reddit post, published January 06, 2026, features u/ultra__star discussing BND. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/ultra__star  · Tickers: BND