AboutWarren Boroson Expertise Author of "Keys to Investing in Mutual Funds" (Barrons), "Ultimate Mutual Fund Guide" (Probus), "How to Pick Stocks Like Warren Buffett" (JKLasser), and "The Reverse Mortgage Advantage" (McGraw-Hill). Former financial columnist for Gannett News Service.
Experience Author of 20 books; winner of 1996 Personal Finance award from Investment Company Institute and Washington University. Formerly on staffs of Money and Sylvia Porter's Magazine. Had a radio program (on WEVD) about mutual funds and a newsletter, FundDigest.
I have around $16,000 that I want to put into a more income/conservative type fund. I'm willing to take on some risk (I want more than a money market) but I also may need to use this money in the next 0-3 years. I like Vanguard funds and have been looking at their Total Bond Market Index and Lifestyle Income (20% stocks, 60 bonds, 20 cash) funds that both get 4 stars. Any recommendations? Any other funds/devices that I should be looking at? Thanks a lot!
Answer Dear Jason--
First, diversify. With $16,000, you can invest in more than one fund. Maybe three or four.
Second, consider Vanguard Short-Term Corporate Bond. (Vanguard's bond index fund is a mid-term fund.)
Third, consider going outside Vanguard. I own Fidelity Floating Rate High Income Fund-- http://quote.morningstar.com/fund/f.aspx?t=FFRHX
And consider T. Rowe Price Spectrum Income, which is more diversified than a bond index fund. (I own that, too.)
