Would real estate or utilities funds be a better choice then bonds? and NYC, 40 Bond, Gate, Draft Design

Would real estate or utilities funds be a better choice then bonds?

In retirement and I feel that I have to much in bonds.
If interest rates rise, bonds will get killed.
Your opinions please.
.


Bond best answer:

Answer by cactusgene
You are correct, bonds will fall in value once the Federal Reserve abandons the policy of low interest rates and the yield of current bonds falls below the then required market yield.

Utility funds have traditionally shown a steady, but modest increase in values, because people will always require water, natural gas and electricity.

And then there is real estate. This will probably be your best hedge against inflation and will give you the highest rate of return in the future, because home prices are still very low compared to past years and available fixed rate loan interest rates are also at historically low rates. Furthermore, if you get a mortgage loan you get tremendous leverage of your equity capital, because of the use of other people's money.

Bond

NYC, 40 Bond, Gate, Draft Design


Image by Detlef Schobert
Building: New York City, 40 Bond Street, Completion 2007.
Owner: Ian Schrager.
Design architects: Herzog & de Meuron.

Gate, draft design, "reverse", status summer 2005.

Expanded polystyrene, milled, size 2 x 3 m.
Exhibited in London (2005), Basel (2005), Munich (2006).

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