Announcement

Collapse
No announcement yet.

Considering Bonds

Collapse
X
Collapse
First Prev Next Last
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Peds
    replied
    Vwiux.

    Leave a comment:


  • Tangler
    replied
    FLP you mentioned putting bonds into taxable account if IRA bond choices stink. So, my question: What vanguard bond funds do you like for taxable accounts? Anyone have some vanguard bond funds they like for taxable accounts? Thanks!

    Leave a comment:


  • Lordosis
    replied




    Lol wasnt a call out so much as your statement was wrong

    You do you!
    Click to expand...


    Haha it is hard to cherry pick the future.

    I agree bond can outperform if stocks do so awful.  I will be eternally grateful to you for my 5% bond allocation :P

    Leave a comment:


  • Lordosis
    replied


    Btw 31% deduction isn’t that bad of a break.
    Click to expand...


    The only way I get 31% is 24 fed and 7% state. and the only fund available is a NYS long term muni fund.  However After looking at it the duration is shorter then the total bond fund.  I had not really considered it but I will investigate if I need some taxable space.

    Leave a comment:


  • Peds
    replied
    Lol wasnt a call out so much as your statement was wrong ?

    You do you!

    Leave a comment:


  • StarTrekDoc
    replied
    Aren't you early on in career? 5% is fine for skin in the game learning. Btw 31% deduction isn't that bad of a break. Compare the bond earnings differentialbeteeen deferred and municipals. Vs taxable straight up.

    We use the muni funds largely as our back up emergency as it holds minimal capital gains implications if liquidation is needed in a pinch that the LOC won't cover for whatever reason.

    We are eyeing a property right now that's interesting and may dip into another RE

    Leave a comment:


  • Lordosis
    replied
    So Peds called me out in the comments on the post today.  Made me realize I never finished this story for those who cared.  I asked our plan administrator about options in the 403b and they said it was funny that I mentioned it because we got new Target date vanguard funds that just went into effect.  Unfortunately I can not invest in the individual funds right now but I am using a 2060 target date which is 10% bonds  and since my 403b is half my current portfolio it gives me a 5% bond allocation.  I am happy with that for now and may need to re adjust as the parts of my portfolio outside the 403b grow larger.

    Leave a comment:


  • mjohnson
    replied
    Actually that is why emotionally I prefer bonds in my taxable account so if the market drops my taxable doesn't do as bad as the 401K.  I know in the grand scheme of an entire portfolio it doesn't matter and may hurt a little having bonds in taxable but at my level of investing currently it makes sense to me.

    Leave a comment:


  • Lordosis
    replied
    When it is fake you remember the successes and missed opportunities.
    When it is real the failures weigh heavier.

    Leave a comment:


  • Zaphod
    replied
    Its not some crazy change, its certainly not detrimental, might even be beneficial...so I see nothing wrong all things considered (if the choices werent terrible). It does help you pay attention when you have something at stake.

    Its like people that say to paper trade to practice for trading. What a joke, its entirely different. Im a billionaire in my paper trading account, real life results did not follow.

    Leave a comment:


  • jacoavlu
    replied
    ibonds now, married you can do $25k per year if you do it right and treat it as a part of your EF

    you can also purchase T bills in taxable, treat as part of EF, interest is exempt from state tax, most places at least, confirm for NY

    locums -> 1099 -> solo k -> BND at Etrade

    Leave a comment:


  • Lordosis
    replied


    don’t you have a taxable account? buy munis there to get to your AA with bonds across all your accounts. Those aren’t great bond options in your 401k. Try to talk to someone about getting better bond funds in there?
    Click to expand...


    Yeah I have taxable but I do not make enough to make munis really worth it but enough that I would rather not have bonds in taxable.

    We are a relatively small community hospital I do not know how much they will listen to me about fund choices but I might give that a try.

    Leave a comment:


  • Lordosis
    replied


    Are there any target retirement choices available?
    Click to expand...


    yes but they are crummy as well.


    don’t agree with this. Changing your asset allocation for learning purposes is a poor idea, just some mental gymnastics that a grown adult shouldn’t need. There are perfectly good reasons to change your asset allocation but this isn’t one of them.
    Click to expand...


    I have not changed anything yet.  Just considering my options.  Over the past 1-2 years as I took control of my financed I have watched how my stock funds have preformed and looked at the older information and I think it really helped me know what I do not know.  When I was new at this I thought that looking at the old data it should not be very hard to "time" things in my favor.  How obvious it seemed.  I have been watching carefully making my predictions all along the way these past 18 months and I am convinced now that market timing is not worthwhile.

    You are right I could just follow a total bond fund in a similar fashion to the same effect but I think it would be more useful if it is one that I am invested in or planning to invest in in the future.

    When I wrote my IPS I decided that I was going to introduce bonds at age 40 or at an retirement fund amount of 1M.  Which ever comes first.  I am still more then 5 years and 500K from that point.    I have learned a lot since I made myself those rules and I am considering changing them to a little sooner based on what I have learned and what I think I do not know and need to learn.

     

    Appreciate the advice so far.  Seems Like Ibonds are work looking into.

    Leave a comment:


  • Lordosis
    replied


    the TIPS fund would be my choice based on cost, except you dont need TIPS. would even consider 10K ibonds and some munis maybe…..   i applaud your consideration, and thats enough for me. my belief in bonds has to do with some behavioral help, some re-balancing help, some return help, and ultimately, its positive diversification.
    Click to expand...


    I agree I do not need TIPS

    I could look into ibonds that is something I do not know much about

    Last I checked munis did not offer much advantage for me in my tax bracket.  I am in the federal 24% bracket and NY 6.8%ish.  There is a NYS Muni but it is long duration bond fund and it did not seem low risk enough to justify.


    Assume these are 401k options. What other space is available?
    Click to expand...


    Roth but I would rather not use that for bonds.  Same with HSA.

    Spouse does not have a current 401K but she does have an old one.  It is less then 5% of our retirement so not very useful.


    Is all 401k pretax?
    Click to expand...


    yes


    Any taxable brokerage?
    Click to expand...


    Yes all in equity right now


    agree I Bonds are a good option for post tax bonds.
    Click to expand...


    I should look into this

    Leave a comment:


  • JBME
    replied
    don't you have a taxable account? buy munis there to get to your AA with bonds across all your accounts. Those aren't great bond options in your 401k. Try to talk to someone about getting better bond funds in there?

    Leave a comment:

Working...
X