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Author: JCMcCarter Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75839  
Subject: Corporate vs Treasury Bonds Date: 8/5/1999 9:01 PM
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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.

Craig
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