Mason_J,

I recognize the effects of inflation and taxes. However, I also recognize that a balanced portfolio requires a stabilizing fixed income component. I am capable of dealing with the tax complexities of bonds in non-registered accounts but have now found better things to do with my time. As well, purchases of individual bonds, even from discount brokers, will give you in almost all cases a security with a guaranteed capital loss if held to maturity. Not only that, the yields to maturity on investment grade bonds are often less than those on GICs. Bonds have liquidity advantages but ample liquidity can be had with the use of high interest savings accounts.