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No. of Recommendations: 2
As one who only recently moved a large % of my port into a combination of Vanguards TBM and TIPS funds (VBMFX & VIPSX), I worry about extremely poor 'timing' (much like tech in 2000-2001)....

Ok, now that I've shown I know very little about Asset Allocation (despite reading 4 Pillars and various Vanguard opinions)....are the above two funds a bad place to put fixed income investments for the next 10-15 years? I realize that bond funds aren't as popular here as they are on the 'bogelheads' forums, but they seem/seemed easier to hold than finding other 'better' fixed investments (at least for me).....I just hate to fool myself into thinking I'm allocating my fixed funds into a known sinking/extremely risky ship.

Opinions appreciated......


Read the board FAQs about bond funds.

Bernstein and most of the true believers on indexing (of which I am one for stocks) and slice and dice (I am not one), don't seem willing to look at bond funds as different animals from stock funds. The bottom line is if you put money into bond funds when interest rates are lower than when you sell you bond fund shares, you will lose money on your shares and that lost money will never be made up by higher yields or rebalancing bonus. You can avoide this by buying individual bonds or CDs or TIPS.

However, usually the loss you will sustain on a fund won't be huge, like a stock meltdown. It will just end up shaving a percentage point or maybe a few off your total return.

Some of us think buying CDs or TIPS at auction or the occasional bond isn't any harder than dripping money ino a bond fund. It isn't like stock picking, unless you start playing with buying junk.
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