Since we'd like to add a bond position to our portfolio, would it make sense to establish a Rollover IRA for her in a bond fund?If you don't currently have any fixed-income assets, a bond fund may make sense for you; however, I'd suggest educating yourself on how bonds work, more specifically how bond funds work before investing. Most people agree that bonds are an important part of a good asset allocation plan.And if so, is it wiser to invest in a taxable or non-taxable bond fund in an IRA?I'm not sure what you mean by this question as an IRA is by definition tax-deferred. If you are referring to the type of bond fund (e.g. tax exempt), there is no reason I can think of to invest in a tax exempt bond fund in a tax-deferred account. Some bond fund suggestions for you to consider are Vanguard Short-Term Corporate or Vanguard Total Bond Market. Short-term corporate is probably a less sensitive to interest rate risk, but if your time horizon is long enough total bond market might be the better choice especially if you continue to add new money into the fund over time.
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