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Own a treasury fund and treasuries are going to go down -- >> that's all you can do. >> right. this type of fund and all the major fund families have this kind of a fund and there are different levels of risks. gives the manager to bump into something else and take advantage of a rising rate environment. it's a more moderate way to do this. >> let's give hour viewers an example. the concept of having strategic and flexible in the name means exactly just that. it doesn't have to be just in treasuries, high-yield or municipals. >> that's right. you're turning over the daily management of someone...

I hear it every day. what people are talking about mostly are traditional treasury bonds and perhaps municipal bonds. if you go to a strategic income fund, you're going to bring in additional opportunities. the investment manager may have treasuries in here. and you could have a spot where when quantitative easing ends at the end of june -- >> quantitative easing is this throwing money into the economy to keep interest rates low. >> that's right. >> and thooets that's going to end. >> at the end of june, treasuries could bump up. but eventually they're going to come down in terms of the value ...

Unfamiliar with investing prior to the last 30 years. they're unfamiliar with what do you do when rates go up. if we are in that environment, if inflation picks up, a low-risk way to do this would be to look at t.i.p.s. the idea is you get a low interest rate but every year it bumps the principal up by the rate of inflation. if only problem is if you need income from it, it's not going to provide a lot of annual income. >> all that matters is your capital is not losing value because of inflation. >> right. most bonds, when interest rates go up, are going to lose money after inflation. this wil...

The right questions, what's the exchange rate, how do you mail in, sech the funds. can i do it in a responsible and safe way. >> so do a lot of checking first before you make any moves. all right. our next question is from craig in delaware. he writes, i'm 43 and have $350,000 in my 401(k). the account is 90% stocks and 10% bonds. i know a more appropriate mix for my age would be 70/30. but isn't this an awful time to move that much money to bonds with interest rates so low and high bond prices? should i wait for rates to rise before acting? what do you think, doug? >> we went through 30 years...

Do it and need to do it now. don't just pick the bond fund that's in there. find the type of bonds, get on the internet and look for bonds that do well in a rising rate environment or fixed account that can change rates in an upward fashion and you'll do very well. >> i think someone like craig knows the ratio should not have a hard time doing the research. thanks for helping us out today. if you have a question you want answered, we're heapiappy to he you out. i got into one of the best schools in the country!