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I am approaching retirement age, and I am trying to decide how to invest the "bond" portion of my retirement (non-taxed) account. I probably won't need to make withdrawals from the account for another five years, and even then I would withdraw no more than 4%/year. Currently, 40% of the account is in an intermediate bond index fund (the other 60% is in stock index funds).

In my situation, does it make sense to keep the 40% in an intermediate bond index fund, or would it be better to have some or all of the 40% in a short-term bond index fund or a money-market fund? If so, what proportion should be in (a) a money market fund, (b) a short-term bond index fund, and (c) an intermediate-term bond index fund?

Many thanks.
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