I thought about asking this on the Golden thread, but perhaps it is more specific to my situation. I am recently retired (2022) and have picked effectively a 2 bucket system: Bucket 1 - 10 yr bond ladder (includes 18 month's cash), Bucket 2 - diversified stock (ETF) portfolio. I started constructing the individual bonds last year exiting primarily short term bond ETFs. With the active Fed increases over the last 9 months, my bond fund stayed, by design, in primarily shorter term maturities. Additionally, part of the short term strategy was due to my timing in rolling over our 401Ks to IRAs so my "bond guy" can give me specific bond recommendations avoiding ERISA conflicts.
So hears my dilemma, my bonds are split roughly 50/50 between after tax and tax deferred accounts. I view most of my after tax bond allocation as my 1 - 5 year money and tax deferred as 6 - 10. Most of my bond allocation is in Treasuries and a few corporates, but most with maturities or call dates 3 years or less. Next Wed, I have a little over 50% of this allocation maturing so will need to make some significant $$ decisions (i.e. how many bonds to buy to be diversified, how long to go)? I suppose the simplest approach is to do a hard and fast 10 yr bond ladder with the appropriate amounts maturing year after year. But is that the right decision? FWIW, my AA is around 70/30 currently and I view my stock allocation as the primary growth engine and may bond allocation as safer $$ (i.e. Treasuries and BBB+ rated corporates). Also, while my investments fund 100% of my planned spend, my WR is currently in the mid 2% range and highly discretionary.
How would you start placing your bonds if you had over 50% maturing next week?
So hears my dilemma, my bonds are split roughly 50/50 between after tax and tax deferred accounts. I view most of my after tax bond allocation as my 1 - 5 year money and tax deferred as 6 - 10. Most of my bond allocation is in Treasuries and a few corporates, but most with maturities or call dates 3 years or less. Next Wed, I have a little over 50% of this allocation maturing so will need to make some significant $$ decisions (i.e. how many bonds to buy to be diversified, how long to go)? I suppose the simplest approach is to do a hard and fast 10 yr bond ladder with the appropriate amounts maturing year after year. But is that the right decision? FWIW, my AA is around 70/30 currently and I view my stock allocation as the primary growth engine and may bond allocation as safer $$ (i.e. Treasuries and BBB+ rated corporates). Also, while my investments fund 100% of my planned spend, my WR is currently in the mid 2% range and highly discretionary.
How would you start placing your bonds if you had over 50% maturing next week?