I just finished reading Larry Sedroe's Rational Investing. He makes a case for cash funds as opposed for longer bonds or bond funds as the fixed asset portion of a diversified portfolio.
In my travels through firecalc I discovered that in order to meet my goal I needed to increase from commerical paper to 5 year bonds ( I didn't want to increase my equity exposure). Now I realize that each of these are not quite the same goal but... What is the opinion of this learned group on the fixed income portion of a diversified portfolio?
There seems to be less information in this area. MM - CDs - short term bonds or bond funds - commerical bonds - junk - I Bonds - TIPS ?? What are good vehicles for an on retirement portfolio to both limit risk and increase value?
I would ideally have investments in both taxable and tax sheltered accounts.
In my travels through firecalc I discovered that in order to meet my goal I needed to increase from commerical paper to 5 year bonds ( I didn't want to increase my equity exposure). Now I realize that each of these are not quite the same goal but... What is the opinion of this learned group on the fixed income portion of a diversified portfolio?
There seems to be less information in this area. MM - CDs - short term bonds or bond funds - commerical bonds - junk - I Bonds - TIPS ?? What are good vehicles for an on retirement portfolio to both limit risk and increase value?
I would ideally have investments in both taxable and tax sheltered accounts.