Bond Fund of America, a corporate bond fund in the same American Funds Group family as American U.S. Government Securities Fund, has beaten the Government Securities fund, hands down, over every time period. This is a reasonable move and it should cost nothing since you have already paid a 4.75 percent commission on the original purchase. In addition, if you felt comfortable with a fund that invests in equities, you could move SOME of your money to American Balanced Fund. It's long term performance has been good and it has equalled the Vanguard Balanced Index fund since the latters inception. Again, a move from one American fund to another American fund should involve no commission costs.
Vanguard funds are no-load.
You are in an IRA so there are no possible tax costs. Q. I am 60 years old and I'm considering retirement in June. Unfortunately, I think you missed the main message in the series of columns written last fall about Peter Lynch and his plan to invest 100 percent in stocks and withdraw 7 percent a year. As I wrote then, real world testing with mutual fund averages shows there is a substantial chance of losing principal and a small chance of going broke with such a high rate of withdrawal. Ditto 6 percent.