Retiring soonish (but don't know when): Is an iShares 1-5 Year Bond Ladder a smart solution?
I'm almost 50 and de-risking my portfolio, which was 100% stocks until recently. Now I have 20%, all in my 401k, in a 50/50 split of Vanguard Inflation-Protected Sec Inv (VIPSX) and Vanguard Total Bond Market Index Inv (VBMFX). If I don't retire until 55, then my 401k, under the Rule of 55, is sufficiently large enough to cover annual expenses for at least 8 years. But I may retire sooner—one or two years from now. So I was considering moving 10% more of my portfolio into bonds. This would be in my taxable brokerage account. Given my 5-year window, and my uncertainty about a retirement date, would it make sense to choose one or more bond ladder ETFs? I was mainly considering these two:
LDRI: iShares® iBonds 1-5 Year TIPS Ladder ETF
LDRT: iShares® iBonds 1-5 Year Treasury Ladder ETF
Thanks for your advice!