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Hey Lokicious,

Thanks for your reply.

For the contingency fund I was looking at ING (for a CD ladder):

Term APY
1 Year 2.80%
2 Year 3.10%
3 Year 3.50%
4 Year 3.90%
5 Year 4.35%

Looks like I bonds are currently yielding 4.08% (only 1.6% fixed)

Are you saying that a laddered CD portfolio is generally better unless you're leaving the money invested for a long period of time (> 20 years) and you have a high state income tax?

In addition, I was hoping you or someone else might have some further advice regarding the bond portion of my retirement portfolio. Again, I have a Roth at Vanguard and a 401K - currently 100% equities. I want to change this to 80% equities - 20% bonds. It sounds like bond funds are not the way to go. Any advice on researching and finding individual bonds to buy. Can I do this through my Vanguard account and if so, do you pay steep commissions? Is there a cheap way to buy individual bonds. Also, I just want to make sure that dollar cost averaging into a bond index fund over the next 30-35 years is not the way to go.

Thanks again for your help!

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