No. of Recommendations: 0
What are you fellow retirees doing for the fixed income portion of your portfolios held within a tax defered account?

I am thinking of starting a 5 step bond ladder that will contain non-callable, Moody AA (or better) rated corporate bonds. The first step will contain bonds that mature in five years. The second rung will hold 4 year maturities. This will continue thru the 5th (and last) step which will hold bonds maturing in a year.

My thought is that this will provide a 5 year income buffer should the balance of my portfolio (which is in the equity market) turn sour for a time.

Does this seem like a reasonable approach to sleeping well at night?

Do any of you use Treasury Bonds in tax defered account? If so would you be will to share your reasoning for passing up on the better yields from corporate bonds when you can't take advantage of the tax benefit of the Treasuries?

Thanks for any response and forgive me if this has be addressed previously.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.