Need some imput with regards to Bond funds. I am seriously contemplating setting up a Roth IRA in my portfolio to house a Bond fund. Presently my porfolio looks like this; 1. Growth Fund of America plus Disney Stock in a rollover IRA, 2.Vanguard S&P 500 Index in a taxable account,and 3. Vanguard Small Cap. Value Index in a Roth. The two funds I am looking at are the Vanguard Short-Term Bond Index Fund and Vanguard's Total Bond Market Index Fund. At the present time am leaning towards the Short-Term fund. After reading Bernstein's "The Intelligent Asset Allocator" and Bogle's "Common Sence on Mutual Funds" I realize the need for a Bond fund to help with asset allocation and risk. Any suggestions or comments would greatly be appreciated. Thanks, in advance, to all who answer for your time and consideration in this matter. UETZ P.S. Feel free to suggest any alternative funds or ideas.
Either or both funds seems like a good plan, although I am sure that Bernstein would prefer the Short Term Bond Fund. I would consider the alternative Vanguard Inflation Protected Securities Fund. It invests in inflation protected Treasuries (TIPS), a slightly different investment class than pure bonds. It would be a better investment during retirement when an inflation hedge is more ncessary, but might be a good investment now.
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