While, on the one hand I hear people suggest putting my bond portion of my AA in the Total Bond Market Index, on the other hand Larry Swedroe has pointed out in a posting on 3.4.06 on the other Diehard forum that
I have great respect for Larry so I guess I will choose to put my bond money in either a short or intermediate fund. I choose not to go with TIPS since I already have a good amount put into I-bonds do not like the taxable aspect of TIPS."I don't like the TBM mainly because it includes MBS, and it increases its allocation to MBS at absolutely the worst time ( the lower rates go the more MBS are issued and thus the more TBM holds.)......Also TBM is longer maturity than I would prefer. IMO don't need to hold TBM, TIPS and short to intermediate funds are fine--either one. Owning both diversifies real rate risk."
Am I acting appropriately for the long term?
Also should I think of just putting this in a Vanguard Bond ETF fund?
Are you out there Larry? I have your book in front of me here but I don't believe I am able to work out an answer based on my reading of it.
With thanks for guidance.