nun
Thinks s/he gets paid by the post
- Joined
- Feb 17, 2006
- Messages
- 4,872
As far as equities go I'm index all the way, some US and some international and I think
I have a reasonable understanding. However, fixed income planning is a bit more mysterious. I understand how to put together a CD ladder, but can you do something similar with bond funds? If so how, and what part would the various bond fund types play. ie High Yield, Short term, Bond indexes, Corporate, Muni etc. How do you get the timing of maturity thing working if you're not buying individual bonds, which seems way to archane for me to deal with. Right now I'm thinking about the income part of my portfolio having about 4 years worth of living expenses split between a short trem bond fund and a bond index fund. What do you think?
10% Short Term Bond TCSTX
10% Bond Plus TCBP
10% Real Estate Securities TCREX
20% Equity Index TINRX (Russell 3000 so is very broad)
20% International Equity TIERX
20% Large Cap Value TCLCX
10% Mid Cap Value TCMVX
I'll keep 1 year's living expenses in the bank and 4 year's funds in the bond funds. Every 6 months I'll rebalance selling enough for the next 6 months of expenses, should be around 2% of the portfolio's value.
I have a reasonable understanding. However, fixed income planning is a bit more mysterious. I understand how to put together a CD ladder, but can you do something similar with bond funds? If so how, and what part would the various bond fund types play. ie High Yield, Short term, Bond indexes, Corporate, Muni etc. How do you get the timing of maturity thing working if you're not buying individual bonds, which seems way to archane for me to deal with. Right now I'm thinking about the income part of my portfolio having about 4 years worth of living expenses split between a short trem bond fund and a bond index fund. What do you think?
10% Short Term Bond TCSTX
10% Bond Plus TCBP
10% Real Estate Securities TCREX
20% Equity Index TINRX (Russell 3000 so is very broad)
20% International Equity TIERX
20% Large Cap Value TCLCX
10% Mid Cap Value TCMVX
I'll keep 1 year's living expenses in the bank and 4 year's funds in the bond funds. Every 6 months I'll rebalance selling enough for the next 6 months of expenses, should be around 2% of the portfolio's value.