Greetings-
Although I maintain a 60/40 Portfolio, I am not fully using the advantages of my Tax Advantaged Accounts for Bonds.
Based on my reading on the forum, I am in the process of transitioning to a True - Three-Fund Portfolio with 100% of my Tax Advantaged Accounts being filled with Bonds. My Tax Advantaged "Space" is worth just over One Million. I believe the general consensus of the forum members would be to fill my Tax Advantaged Accounts / "Space" with Total Bond Market - VBTLX, but I need your help. I can't help but think that there may be a better option or I should use something else for this Bond Space:
VBILX - Intermediate-Term Bond - 4.89 - 30 day SEC yield
CD - 5.25% - 5 or 7 Year Period
Treasuries - 5 to 7 Year Period
VMFXX - Federal Money Market - 5.27% - 7 day SEC yield
Just to be clear, once the One Million is filled in the Tax Advantaged Space, Three Million will be used in Non-Tax Advantaged Space. Being that my portfolio is worth close to Four Million, I will still need to fill around $600,000 in a Tax Exempt Bond Fund. My initial thought was Vanguard Intermediate Term Tax Exempt Investor - VWITX. What are your thoughts on this?
Bottom Line, this is what I am thinking:
$1,000,000 - VBTLX (Total Bond Market) or VBILX (Intermediate-Term Bond) - Tax Advantaged Accounts
$600,000 - VWITX (Intermediate-Term Tax Exempt) - Non-Tax-Advantaged Account
$1,920,000 - VTSAX (Total Stock Market) - Non-Tax-Advantaged-Account
$480,000 - VTIAX ( Total International Stock Index) - Non-Tax-Advantaged Account
Just because someone may ask, I am in my early 50's. I have zero debt and would like to retire in the next 5 years.
I am open to any and all suggestions. Thank You in advance for your help.
Although I maintain a 60/40 Portfolio, I am not fully using the advantages of my Tax Advantaged Accounts for Bonds.
Based on my reading on the forum, I am in the process of transitioning to a True - Three-Fund Portfolio with 100% of my Tax Advantaged Accounts being filled with Bonds. My Tax Advantaged "Space" is worth just over One Million. I believe the general consensus of the forum members would be to fill my Tax Advantaged Accounts / "Space" with Total Bond Market - VBTLX, but I need your help. I can't help but think that there may be a better option or I should use something else for this Bond Space:
VBILX - Intermediate-Term Bond - 4.89 - 30 day SEC yield
CD - 5.25% - 5 or 7 Year Period
Treasuries - 5 to 7 Year Period
VMFXX - Federal Money Market - 5.27% - 7 day SEC yield
Just to be clear, once the One Million is filled in the Tax Advantaged Space, Three Million will be used in Non-Tax Advantaged Space. Being that my portfolio is worth close to Four Million, I will still need to fill around $600,000 in a Tax Exempt Bond Fund. My initial thought was Vanguard Intermediate Term Tax Exempt Investor - VWITX. What are your thoughts on this?
Bottom Line, this is what I am thinking:
$1,000,000 - VBTLX (Total Bond Market) or VBILX (Intermediate-Term Bond) - Tax Advantaged Accounts
$600,000 - VWITX (Intermediate-Term Tax Exempt) - Non-Tax-Advantaged Account
$1,920,000 - VTSAX (Total Stock Market) - Non-Tax-Advantaged-Account
$480,000 - VTIAX ( Total International Stock Index) - Non-Tax-Advantaged Account
Just because someone may ask, I am in my early 50's. I have zero debt and would like to retire in the next 5 years.
I am open to any and all suggestions. Thank You in advance for your help.
Statistics: Posted by RidgeCrestMan — Sun May 26, 2024 11:33 am — Replies 8 — Views 660