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Post by chang on Mar 25, 2022 17:25:14 GMT
I sold all my IT and LT taxable bonds last year and the beginning of this year. Feeling pretty smart about that.
For some reason — honestly, I have no idea why — I decided my VWALX was sacrosanct and didn’t sell any of it. Not feeling too smart about that.
Cut to the chase: what to do NOW: hold or sell?
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Post by fishingrod on Mar 25, 2022 18:35:36 GMT
I can't tell you what to do. I can only tell you that I just bought some.
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Post by Chahta on Mar 25, 2022 18:48:46 GMT
Sorry but my 2 cents is to hold and build by reinvesting. Those funds are for income. Why are folks so afraid to hold a bond fund when equities don’t bother them to do so? I speak from experience. I have held my munis in the taxable account.
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Post by chang on Mar 25, 2022 19:09:03 GMT
Sorry but my 2 cents is to hold and build by reinvesting. Those funds are for income. Why are folks so afraid to hold a bond fund when equities don’t bother them to do so? I speak from experience. I have held my munis in the taxable account. Every investment I own is for TR. I don’t believe in “income” investments. As it happens, I have all dividends reinvested, so yes I am buying at lower and lower prices. But the investment is losing value and the trend is down. That is not my preferred behavior. |
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Post by Chahta on Mar 25, 2022 19:31:30 GMT
10 yr TR is 4%, 3% of which is yield. Not much room for error there. It is nice to have some tax-free money to get ahold of from a taxable account and not worry about paying taxes on the yield.
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Post by chang on Mar 25, 2022 20:08:44 GMT
10 yr TR is 4%, 3% of which is yield. Not much room for error there. It is nice to have some tax-free money to get ahold of from a taxable account and not worry about paying taxes on the yield. I don’t look at 10Y returns, or any prior returns, for bond funds. My view is that we are in a new world for bonds. The 10Y yield has dropped over the last 20 years from around 12% to zero (just off the top of my head). It has nowhere to go but up. Except for VWALX, I have pretty much decided to ignore bonds for the next 10 years. The question is why I exempted municipal bonds from that viewpoint so far … I don’t really have a good answer to that. (Actually, I did axe my PHMIX about three months ago, so I deserve an attaboy for that.) |
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Post by Chahta on Mar 25, 2022 21:32:14 GMT
Because as I say, nice to go fetch some tax free money. I decided this month to collect the yield from taxable. Need a few more bucks for golf bets. 😂
Just my no count opinion but you are OK to leave them alone. 1 year out of nine was down and this year will be the second out if 10. Hopefully next year is up again.
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