Conventional wisdom tells us that we should have some investment grade bonds in our portfolio because they help to smooth out volatility. Investing in good quality equities is probably more rewarding in the longer term but we have to develop a stomach for the volatility that comes with the territory. Whatever the case may be, when I turn 55, there is no way of knowing if equities would be in a rough patch or not. So, having some money in investment grade bonds makes sense to me. It gives me peace of mind. The CPF is as good as a AAA rated sovereign bond and it is one that pays relatively attractive "coupons". OK, to be fair, for a younger person, the "coupons" are less attractive than they are for an older person like me ......