The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: jwilliams0215 on July 18, 2014, 02:02:32 PM
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I'm curious to what you guys view as a good bond fund for a 2-4 year investment horizon? Sticking with the mustachian preferred Vanguard, here is a link of potential investments:
https://investor.vanguard.com/mutual-funds/vanguard-mutual-funds-list?assetclass=bond (https://investor.vanguard.com/mutual-funds/vanguard-mutual-funds-list?assetclass=bond)
I'd think a minimum expected yield of 3% would be necessary or you could just drop the funds into an online savings account and get 1% or close to it.
To minimize risk, I would think a fund with investment grade companies and no more than medium duration would be preferred. In this light the VFICX fits the mold, but only has a yield of 2.52%.
Thoughts on the risk and reward of this account vs. others?