Model Vanguard Portfolios for Short- and Intermediate-Term Goals

Plus: What declining interest rates mean for bonds. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=58088&elqTrackId=1f725d1f3668410a96a191ca0bf9c47d&elq=20a0f69f716d41c5890222cf63bde0c7&elqaid=58088&elqat=1&elqCampaignId=29616&elqak=8AF540F03637BFF44FF87187D8907E6FF9B3F33D20B26B65A83B517FFC0D20291412) [Improving Your Finances] Improving Your Finances with [Christine Benz]( [Christine Benz] “What about us Vanguard investors?” That was one of the pieces of feedback from [my recent article about short- and intermediate-term portfolios]( which mainly leaned on Fidelity funds for their fixed-income holdings. But Vanguard also fields a terrific lineup of core bond funds that lend themselves to building an investment portfolio for short- or intermediate-term spending horizons. Better still, Vanguard’s funds are even cheaper than peer funds with similar credit qualities and interest-rate exposures. That means they can generally take less risk but still deliver income streams and, in turn, long-term returns, in line with their peers’. In this week’s column, I shared some [short- and intermediate-term portfolios composed of Vanguard funds](. Cash is a big component of these portfolios, especially the short-term ones. Cash investors have been riding high in recent years thanks to the higher yields available on CDs, money market accounts, and high-yield savings accounts. But those high payouts can prove fleeting, as evidenced by declining yields in the wake of the Federal Reserve’s recent rate cuts. [Amy Arnott’s article about how to use cash in a portfolio]( is a helpful discussion of when to use cash and how much. [The Federal Reserve’s decision to cut the fed-funds rate by a half percentage point last week]( also affected bonds recently: Yields have gone down while bond prices have gotten a bump. Against that backdrop, I appreciated Sarah Hansen’s look at [what the Fed’s rate cut means for bond investors](. Finally, I’m excited to see that my book, [How to Retire: 20 Lessons for a Happy, Successful, and Wealthy Retirement]( has enjoyed a strong reception so far. ([I’ve joked that I’ve started turning to the book’s ranking on Amazon for regular dopamine hits]( I’ve been running hither and thither to get the word out: [Jeremy Olshan and I had a wonderful conversation]( about it for The Wall Street Journal (subscription required) and we also created a limited-edition podcast/video series to accompany the book. [For the first episode, I spoke with Yahoo Finance columnist and author Kerry Hannon about the benefits and challenges of working longer]( as well as what people can do if they wish to stay employed later in life. I also had an absolutely wonderful conversation about the book with my colleagues Dan Lefkovitz and Amy Arnott for the podcast we all work on, [The Long View](. I felt so relaxed and happy during this taping, and I think that comes out in [the finished product](. I hope that you enjoy it! With warm regards, Christine Benz [Model Portfolios for Short- and Intermediate-Term Goals]( Investing for shorter time horizons can be harder than it looks. Here’s how to make sense of it. [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] [Model Vanguard Portfolios for Short- and Intermediate-Term Goals]( With ultralow costs, Vanguard is a wonderful place to invest for spending goals that are close at hand. [Read More]( [How to Use Cash in a Portfolio]( Should you have cash in your portfolio? It depends. Many investors don’t need to load up on cash if they’re saving for long-term goals, but cash plays a critical role for retirees and other investors with shorter-term spending needs. In this series on portfolio basics, I’ll explain some of the fundamentals of putting together sound portfolios. [Read More]( [Fed Cuts Rates by Half-Point in Aggressive Start to Easing Cycle]( Investors expect more cuts this year and into 2025. [Read More]( [What the Fed’s Rate Cut Means for Bond Investors]( It’s time to think longer term. [Read More]( [How to Retire: Understand the Role of Working Longer]( Kerry Hannon discusses how to make working in retirement right for you. [Watch Now]( [Ankur Crawford: ‘When Software Begins to Write Software, Innovation Is Exponential’]( A growth equities investor makes the long-term case for AI. [Listen Now]( Think Like an Analyst With Morningstar Investor Understand funds and stocks from all angles with Morningstar Investor's powerful—and proven—investment ratings and research. Find and compare securities using our comprehensive valuation and performance metrics and get our continuous, unbiased take on the long-term value of thousands of investment opportunities. Investor is your one-stop shop for making better investment decisions. 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