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For simplification, some would choose a single bond fund. A bond index fund is one way to do it.

I'm still looking for the Foolish Maxim for the Fix-it and Forget bond portion. So, would *one* bond index fund for the bond portion be sufficient? Something like: VBMFX - Vanguard Total Bond Index??

If, for example, Dad choosed an 80/20 split, should he throw 20% into VBMFX? If he chooses a 60/40 split, should he throw 40% into VBMFX?

Or should we slice and dice the bond portion up more? Should we throw in a modest % of VFIIX - Vanguard GNMA Index.

Of the bond portions, should one do 1/3 longterm, 1/3mid-term, 1/3 short-term?

Any input would be appreciated. thank you


If he rolls over to Vanguard, he can get a Vanguard brokerage account within his IRA, which means he can get CDs, Treasuries, etc., instead of a bond fund. It really isn't any harder to do a ladder, and a lot safer during low interest rate periods. If he really can't handle anything as "difficult" as a ladder and must have a fund, go with the Intermediate Index bond fund instead of the Total Bond fund, for reasons that have been discussed here, and on the index fund board, before (and John Bogle agrees).
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