Re: Anybody know anything about Amerus Life Annuities?
One problem with the balanced funds/Target Retirement funds in taxable accounts is that they are constantly rebalancing, realizing LT and ST gains.
Plus, if your friend is in a higher tax bracket, the balanced funds/Target Retirement funds use fully taxable bonds [except Vanguard TM Balanced].
You might explore filling up his tax deferred accounts [401(k), Roth] with bonds first, and using the money in the taxable for tax efficient equities [ETF's, VTSMX, etc]. IMO, taking all his retirement accounts into consideration for asset class placement would be better than having a mix to stocks and bonds in each account.