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Indeed. In fact, in my asset allocation I ONLY use short-term bond fund indexes regardless of the interest rate environment.

Well, my point was that bond FUNDS are a bad bet, no matter what the maturity, unless you are in a falling rate environment. Right now, you can get CDs out to 5 years for over 5%. IMHO, those are great deals as compared to bond funds. If you buy a bond fund now and rates go up, your principal will go down correspondingly. Not so in a CD. You would have more cash in a bond fund if rates went down, but, realistically, in a 5% environment, that's not too likely to happen. Just my opinion again, but if you have money you want in a bond allocation, either buy CDs or actual bonds, not bond funds.

Disclaimer: be sure you understand, really understand, the early redemption provisions of any CD you purchase.

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