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URL:  http://boards.fool.com/charlie-youre-scaring-me-im-talking-with-a-17283236.aspx

Subject:  Re: Purchasing Bonds Date:  5/29/2002  12:16 AM
Author:  iamdb Number:  3779 of 35345

Charlie,

You're scaring me. I'm talking with a broker at Washington Mutual Financial (recommended by our accountant) about creating a five to seven year bond ladder with over $400 K of my 89-year old mother's money. I'd feel more comfortable buying Vanguard's Total Bond Market Index (VBMFX), Short-Term Bond Index (VBISX), or Intermediate-Term Bond Index (VBIIX), but I'm concerned about buying at a near peak NAV, given the unusually low interest rates.

Her portfolio, after removing the IRA I inherited, is about $850 K. My thinking has been 40% in Vanguard's Total Stock Market Index (VTSMX), 10% in Vanguard's REIT index (VGSIX), and the remainder in fixed income investments. Our accountant and the broker question the wisdom of 50% in equities for an 89-year old women. Mom has brothers 102 and 96, as well as a sister 97.

Advice is welcome. I know nothing about buying bonds.

db
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