I asked a question as part of a different thread, but thought it worthy of its own limelight.
Here's part of that thread:
rphyx-rsivx-new-commentary-explains-mistakes-that-resulted-in-credit-losses@David_Snowball commented on a possible alternative to RPHYX or RSIVX :
"...the best bogey I've got is Osterweis Strategic Income (OSTIX), which Mr. Sherman considers a legitimate peer. In their worst stretch, it took them nine months to recover from a drawdown. Since OSTIX is still below its previous high, the drawdown underway now might last longer. So maybe this is your "in a year or two" money, which implies judging performance over a couple year cycle."This got me thinking and I commented back to David:
"Just picking up on your thoughts for OSTIX as part of someone's "in a year or two" money. I went a bit further and added other time frames as well as other fund considerations to create kind of a "fund ladder"."For Less than 1 year money - PSHDX, BSBSX, FOSIX,
For 1 year money - RPHYX or RSIVX...or instead, maybe FIRJX or DLSNX
For 1-2 year money - OSTIX,
For 3-5 year money - PONDX, FAGIXAnyone have thoughts on what your "fund ladder" might consist of?"
Comments
From my posts you likely recognize that I love simple plans.
Consequently, my concept for a mutual fund ladder is far less nuanced than yours. In fact, I perceive my ladder as having only two rungs.
My ladder has a short term rung that has sufficient resources to withstand a major disaster or market drawdown, like 3 years worth of possible needs. A low cost short term government and/or corporate bond fund satisfies that requirement, like from Vanguard.
My other rung contains all my other mutual fund holdings. I contemplate holding them for at least one total market cycle to test their robustness against a bull and bear experience. I suppose that translates to a planned minimum holding period of 7 to 10 years, situationally dependent.
I'm a very patient investor.
Best Wishes.