I'm not sure it is the "best" plan -- is there such a thing? But here's what my financial planner and I have settled on as the plan for now for bridging to retirement. Plan subject to change as it is at least 3-5 years away, but I like having a plan in mind.
Start with putting the cash in a premium money market fund -- I'm on Fidelity so can use FDZXX, which has a slightly higher interest rate than basic money markets. $100,000 minimum deposit, but once you make that first deposit, you don't have to maintain the minimum. Keep 1/4 in money market, 1/4 in VBIL or SGOV, 1/4 in TIPS ladder, 1/4 in CLO fund such as JAAA, BCLO, or CLOB.
Start with putting the cash in a premium money market fund -- I'm on Fidelity so can use FDZXX, which has a slightly higher interest rate than basic money markets. $100,000 minimum deposit, but once you make that first deposit, you don't have to maintain the minimum. Keep 1/4 in money market, 1/4 in VBIL or SGOV, 1/4 in TIPS ladder, 1/4 in CLO fund such as JAAA, BCLO, or CLOB.
Statistics: Posted by BondHater — Wed Sep 03, 2025 10:22 am — Replies 10 — Views 1627