Quote:
Originally Posted by fintstone
I would expect a return more like this one (index fund). 10-12% per year on the average...even including 2008. Time/Long term is your friend.
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You are showing a stock chart and the investment was in a tax free muni. We don't know what he was looking for. He might have wanted income. He might have used it for his bond part of the portfolio and he had 95% already in stocks. We don't know his age or current income. We don't know his risk tolerance. Too many unanswered questions to determine if a bond fund was the right move. I don't like the choice due to expenses and his timing might not have been the best. On the other hand he might have sold off a bunch of stock at a large profit prior to the crash and put it into a bond fund to limit risk.