We are both ~50 years old, ~10 years to retirement, and our asset allocation is roughly 75% stocks and 25% bonds. House is paid off and we are 80% of the way to the funds we need to retire comfortably. The bond portfolio is roughly 50% VG Total Bond Mkt, 30% VG Infl Protected Sec, 15% VG CA Int Bond Fund, and 5% I-bonds. So generally pretty heavily weighted to medium term. Feeling nervous about the inflation- protected fund and the heavy medium term bias.
We are generally very much buy and hold, re-balance end of year type investors, but wondering if makes sense to shift part of the total bond money and inflation protected money to shorter term bonds for now, as I am expecting interest rate increases more likely than decreases for the next 2-3 years.
So what do you think? Are others in a similar boat moving bond fund holdings to shorter terms, or "letting it ride"? And if moving to shorter duractions, what Vanguard fund(s) to move to? Hold Info protected securities or dump?