Hi, JCMcCarter-- I think your idea is reasonable. I like treasury bonds OUTSIDE my IRA because there is no state tax on them and that feature can't be used in your IRA. If you pick good corporations, there isn't much risk and the yield is better than CDs; worry about what YOU are making rather than what the spread is and the bond market maker makes. A bond is something you OWN, not something you trade. In 1993 I learned not to own a bond fund--it doesn't mature. A bond matures, and you get face. You might also stagger the payment month so that you get monthly income. If you do 6 years instead of 5, and each bond pays a different month, you can have monthly income. Or if you must pay taxes on your house or insurance, work it so you have most of your income in those months. Good luck!
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