I've been tasked with investing $33,000 of a relative's retirement money.
Her goals are twofold:
- Earn a return that she can enjoy within the next 3-5 years. (For example, $5,000 to spend on a trip, house repairs, etc.)
- Appreciate capital that so she can pass on a nice nest-egg once she slips these mortal coils (She's in her 80's).
- How would you allocate this portfolio between stocks and bonds?
- Which bond ETF(s) would you invest in, and why?
- Would higher interest rates (which I think is likely in the coming years) help a diversified bond fund like BND outperform?