9.3% is good … but not 12%

In my early years of investing I also did not hold bonds in my portfolio because I had time on my side. Now that I am about 8 years from retirement I cannot afford the risk of having 100% of my portfolio in stock mutual funds.
Yes, bond FUNDS will lose principle value as interest rates increase but individual bonds held to maturity do not experience this loss in principle.
So, a portfolio asset allocation for someone that is nearing retirement should look different than that of someone that has 25-30 years before retirement. My point is, be careful, asset allocation is a function of time.