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Subject:  Re: Asset Allocation Date:  4/19/2013  5:05 AM
Author:  intercst Number:  72072 of 98510

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?


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.

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