The Money Mustache Community

Learning, Sharing, and Teaching => Investor Alley => Topic started by: walkalot on March 24, 2020, 02:44:18 PM

Title: Input on fixed income allocation in retirement
Post by: walkalot on March 24, 2020, 02:44:18 PM
Short version: retired since 2015, age 62, total investments= about $2.4 million currently split 50% VTI (Vanguard Total Stock Market ETF) and 50% BND (Vanguard Total Bond Market ETF). Living expenses are mostly covered by pension and "work when I want to." Think I can wait until 70 to take SS.

I live my life and don't follow the markets, so I chose VTI and BND because of their .03 and .035 expense ratios. 22% tax bracket; VTI is in taxed accounts and Roth. BND is in nontaxed accounts with some spillover in taxable to keep things at 50%. My wife, who is not interested in investment decision-making, and I are happy to leave whatever we have left when we're gone to be divided among our kids.

QUESTION: Have been wondering if BND is a good choice to continue to "set it and forget it" going forward. I'd be grateful for opinions on that or ideas to consider as an alternative to BND for my so-called fixed income asset allocation. Thanks in advance.