Originally Posted by Cheesehead
I listen to Bob Brinker weekly and subscribe to his newsletter, his AA is 50/50, what he suggests for the Bond portion of a portfolio for people our age is:
20% Fidelity Floating Rate High Income
20% DoubleLine Low Duration Bond
10% Osterweis Strategic Income Fund.
However, two of those have fees around .7% and one is at .9%.
Doubleline low duration(DBLSX) is one I own. I think you are mistaken about its expense ratio. The investor shares have an ER of 0.49 net, I think 2 basis points higher gross (I doubt that will ever see the light of day) Most recent duration is 0.94, and 30 day yield is 1.56%. In the last 12 months its high low was 10.12, high 10.25 so it is very stable given that the last 12 months contained some real bond market movement. I have listened to every presentation management has given for 2 years or more, and I like the way they operate. They are not an index fund, so Boglehead diehards would likely send you elsewhere. They publish a lot of information about holdings, so you can see whether you would feel comfortable. Remember that you can find 1 year CDs around 1%, so giving up absolute safety and accepting modest interest rate risk gives you an extra 55 to 65 bp.
I also own and like DBLTX, the Doubleline Total Return Bond Fund Investor Class. Even though it has lost NAV since my investment about 2 years ago, I am nevertheless way ahead of the game, and far ahead of riskless assets. It has a longer duration, and more credit assets than DBLSX, so it is more exposed than Low Duration to credit and also interest rate change.
I also have short term CDs and savings accounts.
All this is easy to find at your broker's website, or other online sources and I would recommend understanding whatever you buy so you will know what to expect under various scenarios.