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Next year at 56 I'll retire with about $80,000 to rollover into an IRA. I'm 80% invested into stock funds now (zero in bonds) and would prefer not to move that money. I get the idea that about a 30% position in bonds would be a good idea from what I read. Q? Does this general idea make sense and if it does, what bonds would be a good idea. I like funds but bond funds don't seem to be doing well. I don't want to risk the principal.
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Hope you can get more detail from other posts, but I've read just last week, I think in Forbes, that it is worth it to own individual bonds vs. a fund if the amount is $50k or above. You can then control timings much better, etc. Good luck.....
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Rather than fool with bonds or bond funds, why not just put together a ladder of FDIC-insured CDs.

intercst
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Money not needed for >5 years need to be in stocks. Money less than 5 years need to be in cash equivalants. In your situation, money that you'd be spending in retirement over the next 5 years should be in a money market fund, or if you want an extra 1/2 to 1% yield, ladder some CDs (which would be FDIC insured through your bank).

Definitely against bond funds (or any fund). Good quality bonds might get you an extra 1-2% points above a CD, but there not FDIC insured. Considering this would be money needed within a few years, the chance of loosing it is not worth it.

JLC
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SeetheTMFBondandFixedIncomeInvestingboard:

http://boards.fool.com/Messages.asp?mid=11091971&bid=100135&days=7

Startatthebeginningandfollowalllinksforagoodjumpstartonthesubject.Sorrycan'tusespacebarrhightnow.

Goodluck

Tom
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Definitely against bond funds (or any fund). Good quality bonds might get you an extra 1-2% points above a CD, but there not FDIC insured.
Considering this would be money needed within a few years, the chance of loosing it is not worth it.


I have to agree. If you feel it is necessary, go with the cd. IMHO, you are good staying in stocks, however at your age.
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Current best CD rates at bankrate.com are 7.60%APY for 5-yr CD. 7.35%APY for 1-yr CD.

http://www.bankrate.com/brm/rate/high_ratehome.asp

Correct me if I'm wrong, anybody, but this is significantly higher than current return on comparable-length treasury notes.

Tom
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You should always get a higher rate on any type of bond vs. the risk-free T-bill rate. Non-treasury bonds must pay more for issuer and inflation risk.
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