20% of my portfolio is in GOVZ.Does anyone here still hold EDV (Vanguard Extended Duration Treasury ETF)? The topic of long term treasuries has been scarce here since 2021.
I currently hold 10% EDV and 5% VIPSX (Vanguard TIPS) in my pre-tax IRA. Just did a rebalance for the year into both when I rolled over my 401k last month.
My plan is to retire in ~2045, at which point do I start to transition away from EDV into shorter duration funds?
Mostly curious because the majority of the unrealized losses in my portfolio are in my bond fund holdings. I anticipate those eventually going away in 10-15 years but was curious as to the actual mechanics of shifting my allocation over to BND or VBLTX (Vanguard Total Bond Market). Would I just transitioning over 1% allocation per year starting 2035 or just direct new inflows into BND?
For the rest of my portfolio, it's 80% equities and 5% Gold.
My goal is to match the bond duration to my investing horizon to what degree I can.
I am 38 and planning to 100. Perhaps retiring in 10 years. So planning for 52 years of withdrawals between 10 and 62 years from now, with a midpoint around 26 years. GOVZ is close enough.
when I do retire and have no income, I will have a TIPS ladder for maybe 15% of my portfolio and will have 15% nominals, again matching my duration. So that will mean long-term bonds until I am around 65, at which point I will start reducing duration annually. If I’m a live at 75 perhaps I’d be mainly intermediate duration.
Statistics: Posted by muffins14 — Wed Sep 04, 2024 10:00 pm — Replies 4 — Views 310