re: Vanguard ... what y'all thinkin?

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To offset the heavy % of muni bonds, I'm going w/ a tadbit in TIPS (not a fund). Inflation / rates go up, the muni bonds will drop in value though the interest payments will continue to flow. TIPS will reduce the sting of this a bit.

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Just be aware that if you are buying off the run TIPS via a brokerage account that have accreted inflation adjustments and we encounter deflation you could lose money although you would continue to receive the coupon payments,this is because the bonds would be priced higher than the face amount of the bonds. That is why I suggest new issuances from Treasury Direct or newer issues that would have little inflation accretion, I think they have a TIPS auction coming in Jan or Feb. and you don't have to get to your desired position in one lump move. I own individual and the Vanguard TIPS fund, it was all predicated on what was a good deal at the time and level of funds I had available. Given the choice I would prefer individual bonds matched to a desired maturity date in the future. The Vanguard TIPS fund did not pay a dividend the 2nd and 3rd Q's due to the deflation factor applied to the fund holdings. PIMCO has come out with 3-4 TIPS ETF's as well, they cover short to long term holdings but many fixed income ETF's trade at a premium and are not a good deal.

If you have the desire read W. Bernstein's new investment book, "The Investor's Manifesto", it will help you more fully plan and implement what is best for you and your family. Have a great Christmas.

ETA: Managed funds, yeah, you should send the broker a copy of this:

12b-1 fees, will they ever stop

And there is a good article at morningstar.com regarding fund fees and the massive amount of revenue they are generating for American Funds, etc, the numbers are staggering.

Fund Revenue

Growth Fund of America, over $1B in fee revenue, Pimco PTTRX over $1B in revenue, let me in on this gravy train.

kfizzle85 - the talkingheads securities analysts are hired by the mutual fund companies to keep investors trading their butts off so that they make money. If CNBC knows it's foolish to trade and have funds professionally managed due to fees, then why have the sec. analysts on? Because they pay the bills...Yes, it is financialy pornography!! No different than your health magazine that has a new diet program each month - because it sells! Eat smart and exercise - isn't that the only real thing people need to do? MMMHHH...

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Financial Pornography" - CNBC, Wall Street Journal

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I don't follow any of that; I get my financial info from this Board.

btw, the TIPS I bought were not out of the Vanguard Acct. I'm still sitting on that account earning about 0.001% per annum. If we have a W recovery, I'll catch a fund at that time.

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cash into CapOne interest

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I have a money market acct w/ them .. started at 2%, but it's drifted down to 1%.

I also did that Gulf States deal for 4.29%, though there is a max amount. You get a debit card you have to use like 20 times or so per month .. Which for Mrs. Fat Man is child's play.

For it to be porn, IMO, it would have to be visually stimulating and enjoyable. CNBC is neither of those, CR is both.