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Post by Chahta on Oct 25, 2022 13:19:31 GMT
I am curious what you all think about which muni funds to use in your taxable account. Comparing NVHAX to VWAHX, the yield is about the same but duration is lower for NVHAX and NAV decline is better. Yes, none of them have performed well this year.
Is there any need to hold more than 1 to generate interest? Seems to me that you need to pick a yield you like and go with it. 1.0% to 5.5% depending on short, med, long or HY. I suppose with 2 you could adjust yield with duration.
I am not talking about trades or growth, just tax-free income.
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Post by steelpony10 on Oct 25, 2022 13:48:55 GMT
Chahta , You might remember VWAHX is a long term buy and hold for us on reinvestment although not the original holding. Both your choices have rising yields, one has a higher yield presently and is (and will be) more volatile in the future. VWAHX is a better investment at this time whose costs are way less with a longer proven record. In my opinion that’s a better choice.
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Post by ECE Prof on Oct 25, 2022 14:02:29 GMT
Gary
After I bought VWAHX in my taxable account for a small amount, I went with municipal CEF. I had them two years ago, Putnam, but I have Pioneer (MHI). But, UTG is also a good choice in a taxable account because most of the income come from LG and a small part in Dividends. Since my tax bracket is low, this is a good choice for me. I have UTG in my ROTH accounts also, which I bought at $25.53/sh. I can use this as a trade in the ROTH accounts, but probably keep the shares.
Furthermore, I went for more punch than VWAHX. It appears, VWAHX went down after I bought it. I am not going to sell it.
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Post by FD1000 on Oct 25, 2022 21:34:06 GMT
As you know, yield is only one part of total return. Riskier munis will do better.
Why compare NVHAX to VWAHX?
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Post by Chahta on Oct 26, 2022 0:21:24 GMT
This is about funding my Roth conversions with "free" money.
Reinvesting tax-free interest is OK for the HY muni trade in an IRA. I would hate to live on short term CGs from my taxable account, running my tax bill up.
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Post by habsui on Oct 26, 2022 5:39:13 GMT
I used to have large positions in both. Sold most of them last year.
Once rates stabilize, I will reestablish a large position in VWAHX (longer duration), and a smaller one in NVAHX.
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Post by chang on Oct 26, 2022 6:47:59 GMT
I used to have large positions in both. Sold most of them last year. Once rates stabilize, I will reestablish a large position in VWAHX (longer duration), and a smaller one in NVAHX. Similar here. Sold off large (% PV) holdings of PHMIX and VWALX — later than I should have — but avoided most of the meltdown. If CEFs get to > 10% discounts I’ll buy them. Otherwise, once a bottom is clear, I’ll probably use VWALX again. |
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Post by yogibearbull on Oct 29, 2022 12:23:50 GMT
There is a muni feature in the current Barron's. For click-bait, it mentions that some can get 10% tax-equivalent yields in munis now (but you have to be very rich).
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hondo
Commander
Posts: 148
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Post by hondo on Oct 29, 2022 19:05:36 GMT
There is a muni feature in the current Barron's. For click-bait, it mentions that some can get 10% tax-equivalent yields in munis now (but you have to be very rich). There always seems to be a catch.  |
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Post by habsui on Oct 29, 2022 19:57:00 GMT
There is a muni feature in the current Barron's. For click-bait, it mentions that some can get 10% tax-equivalent yields in munis now (but you have to be very rich). There always seems to be a catch. As they say "The first $20M are the hardest.". |
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Post by FD1000 on Oct 30, 2022 14:09:35 GMT
There is a muni feature in the current Barron's. For click-bait, it mentions that some can get 10% tax-equivalent yields in munis now (but you have to be very rich). There always seems to be a catch. It's probably because of taxes = high income + living in states with high taxes. This is why you have a lot more Muni funds for NY,CA. Basically, total return is the same, but very rich people benefit more from Munis. |
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