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I am approximately 5 years from retirement. I will start withdrawing income only at that time from my Ira. I plan to put 30% of my rollover ira in bonds or mmf. The dollar amount would be appx 18,000 for bonds or mmf. Intermediate cash flow will stay in the Ira tax deferred. My brokers mmf pays 4.45% and I believe I must use that fund. Thanks for your quick reply and your questions. Any further insight would be greatly appreciated.

I'm not clear when you are rolling over money into your IRA.

At any rate, the big advantage of IRAs over 401(k)s and the like is the broker is your choice, and you can have parts of your total IRA with different "custodians" (banks, credit unions, brokerages). This means, for your bonds/fixed-income allocation, you can use one or more custodians that will let you build a ladder or bonds and/or CDs—it doesn't need to be your current broker, if they don't have the right options (such as free Treasury auction bidding or high yield CDs). For example, you could open an IRA with the Pentagon Federal Credit Union and start your ladder with 3,4,5 year CDs earning 6% APY, at the moment. If you like your current broker for some other reason (e.g., cheap stock trades), you can use it for that and still have your fixed-income allocation elsewhere. It does make rebalancing across stocks and bonds harder.
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