Fermion
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If cash is held in a I-bond/CD ladder, I am just not seeing the downside to having several years of cash in one's portfolio and reducing long term bond exposure.
70% stock 30% bond portfolio. Even long term bonds are only going to pay you 5% if you are lucky.
Having 70% stock 20% cash (invested in, say 5 year penfed CDs), and 10% long term bonds would give you almost the same rate of return with almost zero interest rate risk.
70% stock 30% bond portfolio. Even long term bonds are only going to pay you 5% if you are lucky.
Having 70% stock 20% cash (invested in, say 5 year penfed CDs), and 10% long term bonds would give you almost the same rate of return with almost zero interest rate risk.