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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: Re: Asset Allocation Date: 4/19/2013 5:05 AM
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dozer183e asks,

<<<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?

</snip>


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.

intercst
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