How to best buy bonds for a retirement portfolio?
October 6, 2011 8:29 PM Subscribe
How do I pick bonds for the bonds portion of a retirement portfolio?
posted by pwnguin to work & money (10 answers total) 3 users marked this as a favorite
I really like the idea of low cost index funds and right now my TIAA-CREF is going 100 percent into their S&P 500 offering. I realize this is somewhat risky, so I'm considering targeting a portfolio of 70 percent equity and 30 percent bonds.
Ideally, there would be some kind of index similar to my equity fund. But the closest I've located is the Barclays Capital Aggregate Bond Index, and I have no idea how it changes, what its competitors are, and whether it serves well as an index itself.
I'm also not clear on what the best method of investing in that index is. For example, I could invest in the AGG ETF via my Roth IRA (a 0.22 expense ratio), or I could go with the mutual fund TBIIX offered in the 403b (0.13 expense ratio). The mutual fund seems like a better deal, but I figure I'm missing something.
Is there a better index? Should I just be using Treasuries?