Yeah, for us it's just a matter of protecting a portion of our combined portfolio. I liked the idea of a GIC ladder (2.25-2.65% at PT) for short term and strip bonds ladder (2.40-3.50%) for mid term. This way we would have 5-8K maturing every year for the next 8 years - which we would hopefully be able to redeploy at higher rates (and wouldn't have to worry about rate fluctuations in between) We also have 1.6% PT HISA, where my husband would prefer to park his extra cash - at least till Feb next year (RRSP contributions deadline )Fixed income is used to dampen the heart-attack factor when a market correction / crash happens. But now short-term bonds yield is so low that you might as well put it in HISA and forget about interest rate risk.
I loved having REITs and dividend stocks "in lieu of bonds", but since some of them dropped 10-30%, figured it would be nice to have a bit of something we can count on in our 50's... but yeah, my husband keeps telling me that it's too late to start buying bonds now, might as well wait till the rates go up - I wish they did already...This. No bonds in the portfolio currently. And since it's probably too late to get in, it'll probably remain like that the first few years.
Yeah, I noticed And regretted not starting the GIC ladder in the beginning of the year - before the unexpected rate cut... lol So part of me wants to wait till they at least "restore" the rate to 1% - yet I can't discount the probability that they may surprise us again...It could be years until they rise...who knows! Experts keep saying things will go up but the experts don't know