That is a great strategy for medium and long term goals, however I always keep some money on the sidelines in short term T-Bills separate from my bond funds for when the market really takes a dump. It is amazing what a boost your savings get by buying when everyone is running for the exits and you have extra cash to buy the securities you always wanted at fire sale prices, especially dividend stocks. But I understand that this is not for everyone but I am very comfortable in retirement by doing this.