The Bucket Approach to Retirement Allocation
http://news.morningstar.com/articlenet/article.aspx?id=667224

What percentage of a bond portfolio could be allocated to strategic/Unconstrained bond funds? This is a personal question as I consider my allocation going forward in retirement.

IMHO, target date funds are one of the most misunderstood/misused categories of funds around. Their fundamental conceit is that they manage the bulk of your portfolio for you, based on "typical" progression through time. Though one would likely set aside funds for specific future purchases (e.g. that "trip around the world" you've always wanted to take), most of one's holdings should be in the target fund.
Doing otherwise defeats the purpose of the fund - to deal with asset allocation as "time marches on". If you don't like a fund's flight path, don't mix and match to get your own - you'll only have to monitor and tweak it as each fund adjusts at a different rate. Rather than simplifying the task of managing your portfolio, you can wind up complicating it.
TRP recognizes that not all glide paths, or people's needs, are created equal. So it offers two separate families of target date funds, Retirement Funds (with a higher percentage in equity), and Target Retirement Funds.
CB is asking for target date tax-managed funds, not asset allocation tax-managed funds (of which VTMFX - Vanguard Tax Managed Balanced Fund is another example). With respect to USBLX, it appears to have a unique approach to fixing its stock/bond ratio. While it happens to be 50/50 now, I expect it to tilt toward stock as interest rates rise. This is because it is supposed to generate at least half its income as tax-free income. As the income generated from tax-free bonds increases (due to rate increases) it will have the flexibility to allocate a greater percentage of the portfolio to equity.
Since I don't use target date funds (I feel I can deal with my own asset allocation), I'm not really looking for a target date tax-managed fund. The suggestion that holds the most appeal for me is the managed payout fund. That's an attempt by fund companies to offer something between an annuity (where you pay up front for a guaranteed stream of income) and funds where you're on your own in managing your income stream. I'd like to see a lot more experience with these funds before buying one, but I think it's an interesting approach.

CB mentioned tax managed funds. USBLX holds both tax free munis and the S&P Index both allocated at about 50% each. What I don't like about the fund is the 1% fee it charges. If I were to create a tax managed portfolio myself I would own these two sectors separately and attempt to learn the tax management techniques myself.
Also, I would like to see more "target death funds". Retiring today with 100% of my portfolio in a heavily laden bond allocation (in say a 2015 target retirement fund) might not get you into the grave as the last check bounces.
Investors and especially retirees in target date funds should ladder these out to their expected "date of death". I would own these in 5 year increments.
In this way, there is always a portion of a retirees portfolio available for income as they reach each of these 5 year milestones while at the same time a portion is still dedicated to continued potential growth out to the gravestone.

Mandatory retirement age of 60? What's up with that?

According to NY Times Dealbook he's reached the mandatory retirement age of 60, or will next year.

Has anyone taken the Dimensional Funds plunge? I find myself wondering if I should go that route? The data for passive funds continues to mount but i am pretty happy with the cheap, superior funds that are out there now. Any thoughts?
mike

How would you do that?
These funds are primarily available to people who pay advisors to manage their accounts. And maybe some employer retirement plans. Most people on MFO don't have access.

Let’s face it; 401(k) sponsors are thieves.
Company executives and their HR people are accomplices.
None of these people make it a point to emphasize
or explain in detail what plan participants are paying.
If the HR department or the investment committee sent
a letter or e-mail to each plan participant at the end of the year
stating, “This is the amount of dollars you’ve paid this year”,
people would see how the thieves are robbing
their retirement savings.
Of course, the letter/e-mail would actually be more helpful
if it said something like, “And here’s how you could
reduce these costs”.
But that would be the suppression of the heterodoxy.

FYI: (Follow-Up Article)
You’re probably paying more than you realize.
A recent study by the Federal Reserve, the Survey of Consumer Finances, found that Americans’ retirement savings in IRA and 401(k) plans are not quite as solid as they should be. If you're going to be successful with your retirement savings, it is critical that you understand the fees and expenses you are incurring.
Regards,
Ted
http://www.marketwatch.com/story/what-youre-really-paying-in-401k-and-ira-fees-2014-09-29/print

... Unconstrained Bond Fund ... Share Classes are A, B, C, D, I, N, T, R, S. Classes I (institutional) and N (not sure what it stands for) have the least expensive ratio. ... I am thinking of placing some money in the fund (assuming I can get in Classes I or N) and there is no transaction fee. I checked Vanguard and Schwab and they do not offer the classes I am interested in .

As rjb112 listed in another thread the fund has "only" seven share classes - no B shares, no R shares. (Almost no fund sells B shares anymore, and likely no new fund is going to create that share class.) You can find my summary of who the seven share classes are for in my followup to rjb112's post.
I tried to paraphrase and summarize Janus' descriptions of its share classes. If you'd like Janus' official descriptions, you can find them (except for D, but including R) in the prospectus for Janus Flexible Bond Fund, Shareholder Guide Section here.
The D class shares are grandfathered for investors who already have investments directly through Janus (not through a broker/retirement plan). If that's not you, you don't need to think about them, you can't get in.
It's really very simple - if you're a new retail investor, and you don't want to pay a load, you'll buy T shares. End of story. Janus is not like PIMCO, where you might be able to get Institutional Share class shares if you go through the right broker, or you might buy D shares, or ???

What? No B shares?
This is what happens when you have fund families that try to sell funds through all channels - traditional (load-based) advisors, wrap accounts, direct retail, supermarket, retirement plan, and institutional. Three families come to mind - Janus, PIMCO, and American Century. I'm sure there are others.
Anyway, though Janus uses a couple of unconventional letters for some of their share classes, the classes you listed follow these basic channels:
traditional load - A, C (front load, level load)
D - direct retail sale (no 12b-1 fee, but 0.12% admin fee, for bookkeeping)
I - institutional (no admin/12b-1 fees)
N - retirement (no admin/12b-1 fees)
T - supermarket (0.25% admin fee)
S - wrap accounts (0.25% admin fee, plus 0.25% 12b-1 fee)
Some more common designations are Inv(estor) for directly sold noload shares, Adv(isor) for wrap or supermarket shares.
Many families use R to denote retirement class shares (or just use I shares w/o creating a different share class).
Usually, fund families use the same share class for more than one channel, which is why you don't often see as many as seven (or eight, with B shares) different classes.
(I'm not going into families that charge different fees depending on how big the account is - notably American Funds; but also Vanguard with Investor/Admiral, Institutional/Institutional Plus, Signal, ETF. These are just a couple of the more obvious families.)
For all this confusion, one nice thing about Janus is that if you're buying on your own, you only have to worry about T class (unless you're one of the grandfathered investors buying directly from Janus, in which case you just look at D shares). You don't have to think about multiple share classes.

JUCAX the Class A version of the Janus Unconstrained Bond Fund (Inception: May 2014) carries a 4.75% front load. Can't imagine a typical small investor paying such a load today for any bond fund. There are however several other share classes (likely for institutions, large investors, and retirement plans) that do not carry a load.

As discussed previously for GPROX, exceptions include (direct shareholders only):
1. Retirement accounts
2. Education savings accounts
3. Minor accounts (UTMA, UGMA)
4. Accounts with AIP established prior to closing
Statement from fund:
http://www.grandeurpeakglobal.com/documents/pdfs/grandeurpeakglobal-pr-20140905.pdf

Vanguard PRIMECAP Core Fund
http://www.sec.gov/Archives/edgar/data/826473/000093247114006730/ps1220a092014blue.htm
Vanguard Capital Opportunity Fund
http://www.sec.gov/Archives/edgar/data/932471/000093247114006729/capitalopportunityps11109201.htm
Vanguard PRIMECAP Fund
http://www.sec.gov/Archives/edgar/data/752177/000093247114006728/ps59a092014blue.htm
Here is one of the filings as an example:
Vanguard PRIMECAP Fund
Supplement to the Prospectus and Summary Prospectus
Important Changes to Vanguard PRIMECAP Fund
New or current Vanguard PRIMECAP Fund shareholders may not open new accounts or contribute to existing Fund accounts, except as described in this supplement. Clients enrolled in Vanguard Flagship Services® or Vanguard Asset Management Services™ may open new Fund accounts, investing up to $25,000 per Fund account per year as described in this supplement, in individual, joint, and/or personal trust registrations. There is no specific time frame for when the Fund might reopen for new account registrations by other Vanguard clients, or increase investment limitations.
Limits on Additional Investments
Current PRIMECAP Fund shareholders may invest up to $25,000 per Fund account per year in the Fund. The $25,000 limit includes the total amount invested during any calendar year in each Fund account. Dividend and capital gains reinvestments do not count toward the $25,000 annual limit. Participants in certain qualified retirement plans may continue to invest in accordance with the terms of their plans. Certain qualifying asset allocation programs may continue to operate in accordance with the program terms.
The Fund may modify these transaction policies at any time and without prior notice to shareholders. You may call Vanguard for more detailed information about the Fund’s transaction policies. Participants in employer-sponsored plans may call Vanguard Participant Services at 800-523-1188. Investors in nonretirement accounts and IRAs may call Vanguard’s Investor Information Department at 800-662-7447.
© 2014 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.
PS 59A 092014

http://www.sec.gov/Archives/edgar/data/1309187/000089418914004577/wyfunds_497e.htm
THE CORE FUND
a series of WY Funds
Class I shares: SGBFX Class Y shares: SGBYX
Supplement dated September 19, 2014 (effective at the close of business) to the Prospectus dated May 1, 2014
The Board of Trustees of The Core Fund (the “Fund”), a separate series of the WY Funds, has concluded that it is in the best interests of the Fund and its shareholders that the Fund cease operations. On August 25, 2014 the Board authorized the liquidation of the Fund and redemption of all outstanding shares on September 30, 2014, 2014.
Effective September 19, 2014, the Fund will not accept any new investments and will no longer pursue its stated investment objective. The Fund will begin liquidating its portfolio and will invest in cash equivalents such as money market funds until all shares have been redeemed. Shares of the Fund are not available for purchase.
Prior to September 30, 2014, you may redeem your shares in accordance with the “How to Redeem Shares” section in the Prospectus. The Board of Trustees has adopted procedures that permit in-kind redemptions (permit you to receive proceeds of a redemption in securities instead of cash) Please contact the transfer agent at 1-866-329-2673 to request an in-kind redemption. The Fund may, at its discretion, redeem your shares by giving you the amount that exceeds the lesser of $250,000 or 1% of the Fund’s net asset value in securities instead of cash. In-kind redemptions, will be processed through your broker or other financial intermediary. Unless your investment in the Fund is through a tax-deferred retirement account, a redemption is subject to tax on any taxable gains. Please refer to the “Tax Status, Dividends and Distributions” section in the Prospectus for general information. You may wish to consult your tax advisor about your particular situation.
ANY SHAREHOLDERS WHO HAVE NOT REDEEMED THEIR SHARES OF THE FUND PRIOR TO SEPTEMBER 30, 2014 WILL HAVE THEIR SHARES AUTOMATICALLY REDEEMED AS OF THAT DATE. CASH REDEMPTION PROCEEDS WILL BE SENT TO THE ADDRESS OF RECORD. IF YOU HAVE QUESTIONS OR NEED ASSISTANCE, PLEASE CONTACT YOUR FINANCIAL ADVISOR DIRECTLY OR THE FUND AT 1-866-329-CORE (2673).
IMPORTANT INFORMATION FOR RETIREMENT PLAN INVESTORS
If you are a retirement plan investor, you should consult your tax advisor regarding the consequences of a redemption of Fund shares. If you receive a distribution from an Individual Retirement Account or a Simplified Employee Pension (SEP) IRA, you must roll the proceeds into another Individual Retirement Account within sixty (60) days of the date of the distribution in order to avoid having to include the distribution in your taxable income for the year. If you receive a distribution from a 403(b)(7) Custodian Account (Tax-Sheltered account) or a Keogh Account, you must roll the distribution into a similar type of retirement plan within sixty (60) days in order to avoid disqualification of your plan and the severe tax consequences that it can bring. If you are the trustee of a Qualified Retirement Plan, you may reinvest the money in any way permitted by the plan and trust agreement.
This Supplement and the existing Prospectus and Statement of Additional Information dated May 1, 2014, provide relevant information for all shareholders and should be retained for future reference. Both the Prospectus and the Statement of Additional Information dated May 1, 2014, have been filed with the Securities and Exchange Commission, are incorporated by reference and can be obtained without charge by calling the Fund at 1-866-329-CORE (2673).

>>>>>@Junkster, is the reason you would salivate at a Fed Funds of 3.75% because you would want to invest in those money market funds or Certificates of Deposit, at the decent yields that we used to see in the past?<<<<<<
Yes! Unlike most here, I have no pension/employer retirement or a large monthly Social Security check. So what I earn on my nest egg is critical. At 2% (actually 1.50% to 1.75%) and more that would be more than enough to cover my lifestyle/expenses and even continue growing my capital. I am even beginning to watch the 5 year T-Bill rate like never before albeit not sure I would ever want to tie up my funds like that.

I have a 403(b) account at Fidelity with all fidelity only choices and another Employer contributed Vanguard based retirement account.
From 2015, The fidelity account will be moved to Vanguard by the employer, I wanted to send some additional fund suggestions in addition to choices below to see if they will consider adding more choices, This Vanguard account has target funds and index funds.
Bond Funds
PIMCO Total Return Admin-----------PTRAX
Balanced Funds (Stocks and Bonds)
Vanguard Wellington Fund Inv--------VWELX
Domestic Stock Funds
Perkins Small Cap Value L------------JSIVX
T. Rowe Price Instl Large Cap Growth---TRLGX
Wells Fargo Advantage Discovery Instl--WFDSX
Dodge & Cox International Stock-------DODFX
I have large allocation in VWELX and DODFX and consider rest of the choices not that great. On fidelity side I had large allocation in FLPSX, FSICX, FNMIX and FSCRX, That money will need to move to above funds.
Please suggest funds preferably with low cost and group managed(instead of single star manager) suitable for retirement account that I can send as suggestion to the Employer.

@jlev
I'm only parroting what I read several years ago: 10-15% bonds in a portfolio will not produce significant protection, since the percentage is too small. Made sense to me then, and now. (This begs the question whether a 29 y.o. needs portfolio protection.) If you have ongoing contributions, you are averaging in when the market is down as well as when it is up. You might be better advised at your age to park some money in cash and watch for the decline (like when ARIVX is fully invested, you'll only be a little bit late.)
With 20 years to go before I'd start buying bonds or bond funds (if I were your age), presuming 35 - 40 years until retirement, and presuming that new money would go into bonds at that time, the stock funds, stock ETFs, or stocks you buy now would have had a run of 30 to 40 years when you retire, if you can keep your hands off the trading icon (except for the individual stocks - I'd watch [or avoid] those). Since few managements are stable over that period of time, index funds are appropriate.
You are paying a significant portion of bond fund gains in ER currently. Looking at my bond fund purchases (all recommended at MFO, which include some of your choices) in the past 2 years, I find minimal gain and some losses, aside from the River Park funds, where I am paying about 20-25% of my gains in ER. (I regard those as geezer funds, btw.)
Since I doubt most currently successful bond funds will have the same management in 20 or 30 years, I have no recommendations. The big companies, such as Fido and Vanguard, can buy brains; smaller funds are a crap shoot. If you want shorter term recommendations, you have many above.
I assume you have read William Bernstein. If not, check him out. I
don't anticipate participating further in this topic.

XX beats XY.
St. John Bogle says Social Security is your bond fund.
...
I do like the EM bonds, tho, but most of your bond funds are for geriatrics. We pay 20 to 40% of our return in expenses for security, which you don't need unless you will really pull the trigger and sell them all and buy stocks at the next correction, if you recognize it in time. Those funds are for fifty-somethings.
High yield with a low ER is probably OK, but they act like stocks in the crash, but recovered faster last time. (Of course, if you are in them, you might have trouble making yourself sell after a loss to buy stocks.)
...
15 to 20 years from retirement, I'd start looking at bonds in moderation, but you might be so rich by then that it wouldn't matter.
Be sure you marry the girl.

I'd be interested to hear what are your list of less geriatric bond funds to check out, In my musings since posting this I noted PONDX, but I'm not sure if that fits your criteria. I'm comfortable with and aware of the SS argument of Bogle, but am not investing here for income, just mild diversification. As you suggest I've been thinking of staying 85-90% equities - currently in a 3:2:1 ratio in US:Developed:EM - until I'm 45-50 or so.
As for DNA sequencing I have some family involved in the business so it's been done. I'm a bit special, but not enough to worry about an early death.
And yes, I shall marry the hell out of the girl.
@AndyJ Agreed about ARTFX and high yield in general, makes an EM bond fund seem maybe a better play for diversity.
@Junkster Hiking in the Sierras is one of our favorite weekend past times. Thank you for the good wishes.