retiredjg wrote:Welcome to the forum!
You certainly do need some bonds (or other type of fixed income investment). However, bonds should not be in your taxable account. Instead, they should probably be in your 401k or Roth IRA.
To help you figure out your best approach, more info is needed. See the link below.
zuga wrote:Any other recommendations are also greatly appreciated.
pingo wrote:Welcome and thank you for updating your intital post!
We also need to add a couple more things, believe it or not:
1. Tax Filing Status
2. Your Federal & State Tax Rate
3. A list of all fund available in your 401k and any available tickers for those funds.
4. Expense ratios for all 401k fund including the ones you originally list above. (Employer-sponsored plan ERs are often different than we'd find at financial websites.
5. Review the "Answering Potfolio Questions" link to see if there is anything else you can include.
All of the information is pretty important to offering the most appropriate suggestions.
retiredjg wrote:zuga wrote:Any other recommendations are also greatly appreciated.
For this question, all the other information mentioned by pingo is needed in order to give you reliable help.
For your original question, your update is somewhat helpful. You could exchange some or all of the 500 Index in your 401k to the bond fund. Use the $40k in cash to buy stocks in your taxable account. This is because you generally want to avoid holding bonds long term in your taxable account.
If that is not enough in bonds, you could exchange some of the stocks in one of the Roth IRAs into a bond fund such as the Total Bond Market INdex.
The question arises, however, why you are putting money into a taxable account? Are you completely filling your 401k? Does your spouse have a 401k or something similar available? Are you filling both Roth IRAs? If you are not using all your available tax-advantaged space, you probably should not be investing for retirement in a taxable account at all.
Your other question is about buying bonds "now". You clearly need some type of fixed income investment. Your portfolio is almost entirely stocks - not a wise position for someone your age. This does not mean your fixed income investment has to be bonds. You could use CDs instead. Or if you use bonds, you could use shorter term bonds which will lose less value when/if interest rates rise. Or you could use money market. Or I Bonds. or whatever.
The point is this. Your portfolio needs something other than stocks. It is unfortunate that none of the fixed income vehicles are paying much, but that does not mean you don't need some.
One last thing....each Roth IRA has two entries for Total International. Is one supposed to be something else?
zuga wrote:Most have front load as well. I've picked the Blackrock S&P 500 since due to the low expense ratio and no front load.
I've been planning to start adding some bond funds, like the vanguard total bond market, but I've been worried about the risk of interest rates increasing and buying into the fund at the wrong time.
I am 35 and have a 401k and roth ira accounts, which I max every year.
Any insights on buying bound funds at this time vs continuing with stocks only? Any other recommendations are also greatly appreciated.
Most have front load as well. I've picked the Blackrock S&P 500 since due to the low expense ratio and no front load.
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