The complete guide to bond index funds for retirement in just 30 words:
- Age <50: Treasury bonds for diversification [e.g. SPDR Portfolio Long Term Treasury ETF (SPTL)]
- Age 50 to 70: add TIPS for inflation risk [e.g. DFA LTIP Portfolio (DRXIX)]
- Age > 70: add short-term bonds to lower volatility [e.g. iShares Core 1-5 Year USD Bond ETF (ISTB)]
That’s it: if you know nothing else about the role of bonds in a portfolio then those three guidelines will help you execute a bond strategy that works.