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6. Your Bond Selection Is Too Risky

If you are on the cusp of retirement, you may want to focus on stable value bond funds and other bond investments that don't come with a lot of volatility. Avoid bond funds comprised of low quality bonds. Don't buy municipal bonds from cities on the verge of bankruptcy. Look for bonds with a track record of avoiding losses even during the rough times.

7. You Have Too Many Bond Funds and Not Enough Actual Bonds (or Vice Versa)

Many people don't see a material difference between investing in bonds versus bond mutual funds. It's tempting to invest in bond mutual funds because of the diversity of bond exposure, but with individual bonds, you'll get all of your principal back as long as you hang onto it through maturity. Bond funds, on the other hand, have no maturity date and could drop in value. There are pros and cons to holding each, so it makes sense to have a mix, if you can.

8. You Have Too Many Long-Term Bonds

If you invest in shorter term bonds, you won't be impacted as much as interest rates rise. The last thing you want is to be locked into a low rate for years and years. With talk of interest rates rising, it's important to remember that interest rates and bond prices move in opposite directions. Longer term bonds will see price drops that are bigger than short-term bonds.

9. You Have Too Many Short-Term Bonds

Short-term bonds are a good way to hedge against interest rate hikes. But long-term bonds tend to have higher returns. If you're not seeing the kind of performance you want from your portfolio, it could be that you are too focused on short-term bonds.

10. You're Not Diversified Enough

If you're not thoughtful about your bond investing, you may find yourself holding many of the same kinds of bonds unnecessarily. There's no need to own shares of several bond funds with similar holdings and philosophies, for instance. And be careful not to invest in a mutual fund that holds bonds that you also own individually.