# There are three reasons to hold fixed income. First, as a reserve fund to pay...
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Original URL: https://x.com/Rick_Ferri/status/2103112404133413338
Author: Rick Ferri, CFA
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There are three reasons to hold fixed income. First, as a reserve fund to pay for things that come up in the next year (T-bills, CDs, money markets are a good choice). Second to provide income and principal for spending over the next ~ten years (a short duration bond fund works well here). Third, for asset allocation, to reduce the probability of a large loss in equities (intermediate duration bond funds work well). If you need to fill one of these three buckets, then moving some money from stocks to bonds at this time is appropriate.