yakers
Thinks s/he gets paid by the post
I posted this on the VG Diehards site and got two replies; both opposite positions Thought I would check with the folks here for any interesting insights:
My MIL is 81. The family is discussing her portfolio with a financial advisor. So far we have decided on an AA of 40% stocks and 60% bonds. This may seem high but most of her expenses are met from SS and pensions. None of the family are really familiar with bonds. Her whole portfolio is taxable. She would use interest for income so it may not matter that she only has taxable funds. The advisor wants to set up a bond ladder but a couple family members are suggesting a bond fund instead. That makes sense to me too but I want to suggest an appropriate VG bond fund or at most two funds. I understand the total bond index but another family member is suggesting only short term bonds. Is the VG short term investment grade fund (VFSTX) the best way to go?
Or 50% VSFTX and 50%total bond (VBMFX) or intermediate investment grade (VFICX)?
My MIL is 81. The family is discussing her portfolio with a financial advisor. So far we have decided on an AA of 40% stocks and 60% bonds. This may seem high but most of her expenses are met from SS and pensions. None of the family are really familiar with bonds. Her whole portfolio is taxable. She would use interest for income so it may not matter that she only has taxable funds. The advisor wants to set up a bond ladder but a couple family members are suggesting a bond fund instead. That makes sense to me too but I want to suggest an appropriate VG bond fund or at most two funds. I understand the total bond index but another family member is suggesting only short term bonds. Is the VG short term investment grade fund (VFSTX) the best way to go?
Or 50% VSFTX and 50%total bond (VBMFX) or intermediate investment grade (VFICX)?