8 of the Best Short-Term Bond Funds
Short-term bonds currently offer attractive yields with modest interest-rate risk.
If you are retiring or you have a big expense in the next few years, you have an interest in conserving the money in your portfolio. You don't have as much time to weather equity market downturns before you have to spend the money. It makes sense to park this money in very low-risk investments.
Thanks to recent interest-rate hikes, yields on money markets have risen to a range of 1.5% to 1.9%. If you don't need the money to be in liquid assets, CDs will bring you even higher, to around 2.4% for a one-year and 2.6% for a two-year.
Karen Wallace does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.