Thanks for your insight!MediumTex wrote:It's my rough guess, but I'll bet it's very close to what 100% TLT would give you. If it's different, it's not by much.foglifter wrote: Is the 50/50 allocation just your rough guess or something calculated?
In my view, EDV is a great way of taking an intermediate term bond fund (which is what most 401(k) plans offer) and using it to fill out the LT treasury part of the PP.
Obviously, this approach is less than ideal, but if you have significant assets in your 401(k) account and don't have access to a brokerage window, you have to do the best you can with what you've got.
CraigR, do you think this recommendation could be reflected in your PP Bond Allocation FAQ? I'm pretty sure majority of people have less than ideal bond investment options in their 401(k) accounts and would be interested to hear about this approach. Specifically, the question "My retirement plan doesn’t offer any suitable long term bond index funds. What can I do?" lists 3 options, and the option #3 "Use the funds that you have to the best of your ability" is the place where you might add as an example MediumTex's suggestion about EDV.