So about a quarter of our investment dollars are currently going into VBISX, Vanguard's Short Term Bond Index Fund (and similarly, into TIP, Fidelity's iShares Barclays Tips Bond Fund ETF, in my wife's Roth) every month. This is based on the Simpleton's portfolio suggested in the preface of
The Intelligent Asset Allocator:
“Simpleton’s Portfolio” described in the preface might be a nice compromise. It is equal amounts of US large company stocks, US small company stocks, foreign stocks, and US short-term bonds with annual rebalancing."
http://ed-chang.com/review/But I'm looking at these short term bonds continually pay about nothing, and wondering if there are better 'safe' options, like cash or a CD ladder...or maybe more intermediate (or diversified) bond funds.
I'm fairly new with asset allocations and have a bit of a blind spot with bonds. Any help is appreciated. We're aiming to be about 8 years away from FI, as that may figure into the advice. Thanks in advance!