I did a search on the boglehead site and could find no reference to the bond fund ("Neuberger Berman" "total bond" site:bogleheads.org), which is somewhat surprising considering that I work for a large company and I assumed there were some bogleheads that worked for the same big company. On the other hand, it does not look like NB offers this fund on it's own website to the general public.
Anyway, if it was simply a matter of noticing that the fund tracks an index and has a low exp ratio, I'd just pick that one for my bond holding and be done with it. Any input or thoughts?
There are no Vanguard TBM options in my 401k, however, I could pick a Vanguard TIPS fund (institutional, .05-.07 ER), or an intermediate investment grade Vanguard index (inst, .05-.07 ER) fund plus some other short term or long-term vanguard indexes.
I have a separate account of money that is akin to a 3 mo T-Bill rate whose rate resets 1x year. It's currently sub-inflation. I can't move or adjust that fund for now, so I'd like to augment it with another fund.
I was thinking of the following options:
a.ignore the 3mo TBIll influence since I can't affect it, and just split the remaining FI portion of the port 50/50 between the NB TBM and Vanguard TIPS
b. ignore the 3mo TBIll influence since I can't affect it, and just split the remaining FI portion of the port 50/50 between the Vanguard intermediate investment grade vanguard index fund and Vanguard TIPS
Any observations? Thank you.
FoolStreet wrote:Anyway, if it was simply a matter of noticing that the fund tracks an index and has a low exp ratio, I'd just pick that one for my bond holding and be done with it. Any input or thoughts?
Verily, thou hast said it. Just pick it and be done. I do the same in one of my 401k plans, except it's managed by Blackrock.
P.S. It's probably a Collective Investment Trust. The wiki has an entry at
http://www.bogleheads.org/wiki/Collecti ... ent_Trusts
If so, the dividends are automatically added into the NAV, so you won't see them reported as a distribution. You still get them, though.
I'm now at about 80/20 Stocks:Bonds at 40yo right now.
Yeah, bond yields suck and there is risk of loss of NAV during a rise of interest rates....but the presumption is that a rise in rates will hit stocks more than it hits bonds, so bonds will take the less bad hit in that scenario. We'll see.
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