Re: Opinions On This Allocation Requested
I can't see anything wrong with this, but here are a few ideas on fine tuning it a bit.
1. *I regard a short term bond fund the same category as "cash" for purposes of asset allocation. *In general, the only "cash" that I hold is for normal transactions and large planned purchases within a year or so, because over the long term the return on "cash" barely matches inflation. *However, if you are holding some cash in anticipation of buying longer term TIPs or other long term bonds when interest rates go up, that is OK. *Also, Vanguard's Short Term Corporate Fund is an excellent way to hold cash beyond what is in a checking account.
2. *You might increase your "effective" allocation to stocks to about 45% by putting about 10% of your cash and/or bonds into Vanguard's REIT Index, and another 10% into one or more high yield bond funds. *TIAA-CREF and T. Rowe Price have ones that are equivalent, and Fidelity has two that are riskier but are likely to continue producing a somewhat higher return as the result.