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Investing/Strategies / Retirement Investing
|Subject: Re: Asset Allocation||Date: 4/19/2013 5:05 AM|
|Author: intercst||Number: 72072 of 76611|
<<<To keep things simple, I use the Vanguard Short-term Bond Fund for my 0-5 years money. At 0% interest, I don't see any reason to have anything in a money market fund today.>></v>
Intercst, once again I appreciate your input.
So are you saying you make deposits and withdrawels frequently with this fund? Does it just act like a MM in that regard?
Yes. I'm essentially using it as a MM and make 50 or 60 transactions per year on the fund. I was worried about the bookkeeping hassle of accounting for all the capital gains/losses at tax time, but you can import everything into Turbo Tax, so it's easy.
Since I believe interest rates will eventually rise, I wouldn't go too far out the yield curve. VFSUX (the fund I use) has a maturity of 3 years and duration of 2.3 years.
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