I am 56 years old and nearing retirement (1 to 2 years). I have a 401K with Fidelity and Roth IRA with TD Ameritrade, both allow me to purchase individual stocks and bonds. I will have a pension income to augment my retirement savings account which makes me a little more willing to take risks (up to a point). My allocation has been heavy into stocks and I got stung a bit over the past few months. As such I think it is prudent to move some money into safer investments like individual bonds (as my stock losses recover). I have avoided bond funds because with the interest rate situation it seems that bond funds have very little to recommend them, maybe I am wrong about this?
So my question is, how do I go about selecting individual bonds? Since my accounts are tax advantaged I don't think munis make sense. I am not averse to corporate bonds. Like everyone else I am looking to minimize my risk and still get a reasonable return. I wouldn't mind locking up funds in a bond for up to five years if the return was respectable (maybe even a bit longer).
So how do I wade my way through a sea of individual bonds and make a good choice? Are there other investment options (though brokerage accounts) that I should consider for safety and income? I already have Vangaurd Welsley, VYM, VDIGX, SPLV, and some GLD.
Thanks
Brian