VTEB
Vanguard Tax-Exempt Bond Index Fund ETF Shares
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Muni bonds vs T-Bills for bonds in a taxable account
Help choosing Vanguard fund(s) for small investment <$5k
Schwab Mutual Fund Builder vs Weathfront Robo $90k to invest.
I have $85k to invest for 10 years or more..what do you think of these options?
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ew. I like VTEB and HYD better.
Look at VTEB and HYD. Nowhere near as volatile but have some advantage.
I thought bonds moved the opposite directors of interest rates. Curious to learn why VTEB price is down since the rate cut announcement? [https://finance.yahoo.com/quote/VTEB/](https://finance.yahoo.com/quote/VTEB/)
I'll never cease to be amazed at questions like this... No, you should not leverage a HELOC to invest into a stock index. What you should do (and should have done) is treat your brokerage like your savings account with a mix of stocks, tax-advantaged intermediate bond funds, and short-term cash. Many people advocate percentages but I like to put the short-term reserves in terms of real dollars. So in your case, I'd be something like $20k into VMFXX, $60k into VTI, and $20k into VTEB. Adjust accordingly for your risk tolerance.
VTEB https://ibb.co/tMnnhdRN
LMAO VTEB overbought?!?!?!
I am planning to hold a couple ETFs here soon. I already hold VTI. I'd like to snag VOO, VWO, VTEB and VT for a rounded 5. But I also like viewing stocks and messing around with day trading as well. Just a nice way to learn and become more financially literate. Hence, my question.
Those are tax advantage bond ETFs. VTEB is long bonds. VTEB is subprime credit credit risk. 30 day yields.
I'm hedging my GLD and SLV with VTEB and HYD. I like income stonks too.
Other assets I've been buying are bond ETFs, they have been fairly stable. Most have low volatility but are somewhat sensitive to changes with the rates. I've been buying securities with 30 day yields that are taxed advantaged. These were the only profits I kept when the market tanked Friday. The two tax advantaged ETF bonds are VTEB and HYD. IIRC, there are others too, another specific ETF I was thinking about adding was GOVT, to focus on 10 year bonds. AFAIK it is also tax advantaged. For exposure to volatility in the bond market I buy TLT. I also buy short term bond ETF TBIL but it took a hit when the shutdown was announced.
VTEB, MUB, and yes SGOV, just because you’ve asked..
I've been indirectly stimulate the guberment by VTEB and these bitches are gonna shutdown?
I will buy VTEB HYD TLT and TBIL until rates drop.
AI said only rich people buy VTEB.
if you think theres gonna be no rate cut sell everything you own and buy puts on VTEB
Bers. Here's a bond ETF investment sleeve. VTEB HYD TLT Kindly FUCK OFF
So 🥭did go all in on municipal bonds, so what would be the corresponding move? MUNI? VTEB? MUB? Fuck if I know
Bought more dip. SOFI VTEB I'm doing my part.
I'll give you one since there's a quite a few. VTEB has my interest lately but there's more. Ask AI, you'll get a whole list.
There's a bunch but VTEB is easy on taxes.
If you like bond etfs don't forget VTEB. It's not 24 hours. Thank you for your attention to this matter. I now return you to your regularly scheduled shitposts. ^(This message was paid for FDB. Fuck the Bers, fuck'em good.)
I have a secret retarded love for VTEB
I have $100k available as an initial investment for a 10 year period (possibly longer) in a personal account. I am looking to be aggressive. I asked Chat GPT, and it said: VUG - 30K VXF - 20K VT - 20K VGT - 10K VTEB - 10K I could also VTI and chill, but I’d be happy to live a bit dangerously. What do you think?
Hey! Thanks for sharing VOO & VTEB! VOO: Over the past 3 years, it had an **annualized return (AR) of 18.82%** with a **max drawdown (MDD) of 24.37%**, which gives it a **return-to-risk ratio (AR/MDD) of 0.77**. That basically means VOO gave you **77 cents of return for every $1 of drawdown risk.** With that ratio, VOO actually ranks in the **Top 5 out of the 50 ETFs** I analyzed. VTEB: Over the past 3 years, it had an **annualized return (AR) of 1.55%** with a **max drawdown (MDD) of 12.40%**, which gives it a **return-to-risk ratio (AR/MDD) of 0.13**. That basically means VTEB gave you 13 **cents of return for every $1 of drawdown risk.** With that ratio, VTEB actually ranks in the **Top 45 out of the 50 ETFs** I analyzed. If you're curious to compare it with others, I put together a full list of the **Top 50 ETFs ranked by return-to-risk** across all 3 timeframes. It’s free to view/download here: [https://finsummary.com/p/new-free-report-top-50-etfs-ranked-by-return-to-risk-1800](https://finsummary.com/p/new-free-report-top-50-etfs-ranked-by-return-to-risk-1800)
Curious about VOO and VTEB
You could get a muni bond ETF that pays 4% fed tax free (VTEB). And if you run into hard times, it is easier to sell an ETF to get cash.
VTEB is down for the year. Just keep it in a HYSA or something like SGOV. The tax exempt part matters very little when you're talking about 6 months
How much in dividends is paid per month by a Tax Exempt Bond ETF in percentages? If an example is needed. Let's use VTEB. I was just wondering cause I saw the dividend yield was 3.28% for the year, but is that an average of what is paid monthly? Like, are you paid dividends of around 3.28% monthly on average for the year? I'm just curious since I was eyeing this out as an investment after retirement to put 5 years' worth of expenses in.
Open a brokerage and Roth IRA at Vanguard. -$10k emergency fund + 20% projected down payment on the house in money market fund. -$7k into Roth IRA. -Split the remaining money (should be about $75k) between VTI and VTEB. I'd recommend 60% / 40% to start. Rebalance when these assets deviate by more than 5% points (or rebalance with new contributions).
This will be a hated opinion but you know what I would do? Take every single penny of that and buy tax exempt municipal bonds such as VTEB or MUB with it and keep that tax exempt train rolling for myself. Protect your money from those greedy hands of Uncle Sam! +1
Lots of fear mongering and nonsense being spouted everywhere. When will everybody understand that “NOTHING EVER HAPPENS” Just a bunch of talking heads spewing regurgitated BS from all directions and both sides. Screw politics. This guy needs to go the easy way. 3 fund 45% VTSAX 45% SPY 10% VTEB Contribute monthly and move on. Turn off the news. Live your life. Go outside have fun. Quit panicking. Nothing ever happens. I’ve lived long enough and lived through soo many “crisis” that this panic is laughable.
My bond allocation is evenly split 1/3 BND (us) in 401k 1/3 BNDX (intl) in Roth ira 1/3 VTEB (munis) in taxable And a 1-year cash emergency fund in HYSA
I had BND and VTEB for a while. But shifted to a more aggressive allocation since I had a 20+ year horizon. I’ll start re-incorporating BND and muni bonds as I get closer to retirement. I also have some real estate holdings for diversification.
Just something to think about here. But why not use a Municipal Bond fund such as MUB or VTEB for your savings so you can not only stack cash but avoid being extorted (taxes) while doing so?
Hello, Could someone please kindly tell me if this is a good mix for my investments - \`\`\` US stocks Vanguard Total Stock Market ETF (VTI) 45% Municipal bonds Vanguard Tax-Exempt Bond Index ETF (VTEB) 16% Foreign developed stocks Vanguard FTSE Developed Markets ETF (VEA) 15% Emerging market stocks Vanguard FTSE Emerging Markets ETF (VWO) 15% Dividend growth stocks Vanguard Dividend Appreciation ETF (VIG) 9% \`\`\` I am relatively young (early 30s). My plan is to invest for retirement. I have tried diversifying to reduce my unsystematic risk.
Hello, Could someone please kindly tell me if this is a good mix for my investments - \`\`\` US stocks Vanguard Total Stock Market ETF (VTI) 45% Municipal bonds Vanguard Tax-Exempt Bond Index ETF (VTEB) 16% Foreign developed stocks Vanguard FTSE Developed Markets ETF (VEA) 15% Emerging market stocks Vanguard FTSE Emerging Markets ETF (VWO) 15% Dividend growth stocks Vanguard Dividend Appreciation ETF (VIG) 9% \`\`\` I am relatively young (early 30s). My plan is to invest for retirement. I have tried diversifying to reduce my unsystematic risk.
If you know you want Municipal bonds but you aren’t sure which funds you want to go with long-term you can always toss it to start into (1) MUB ETF (iShares national muni bond) or (2) VTEB (Vanguard national muni bond). Both have very low 0.05% expense ratio and very well diversified.
Do municipal bonds make sense if you’re not in the highest federal bracket? I haven’t done a lot of comparison but just grabbing a couple of tickers, [VTEB](https://finance.yahoo.com/quote/VTEB/) and [SGOV](https://finance.yahoo.com/quote/SGOV), it seems like under about 30% incremental tax you’re still better off with Treasuries. (I suspect adjusting for duration and risk would push that higher.)
Brand new to investing and curious how I’m looking as a 31 year old male. Finally in my career after years of schooling as a 31 year old. Now looking to play catch up and trying to learn as much as I can. Currently contributing to a HYSA with 4.6% APY, 401k w/ employer match, a few individual stocks and an automated investment account through Wealthfront. In my automated account I have the following distribution: VXUS 25% VTI 35% VWO 15% VTEB 5% VIG 10% I was curious if this distribution is spread too thin? I’m incredibly naive and new to this, trying to absorb all I can and really dive deep in my free time. To say I’m overwhelmed is an understatement. Additionally, looking to start contributing to an IRA in the coming month and not sure what to put where. Looking mainly for long term investments with ETF’s where I can invest and forget in addition to a few handpicked stocks that I’m interested in. Definitely avoiding options as that’s an incredibly confusing and slippery slope that I want nothing to do with at the moment.
No, they have me using VTEB in my taxable account and just wanted to make sure I understood why. Thanks again!
Sorry to jump back on this with one more question, but any advantage of BND over other funds like VTEB in this scenario?
General question about Bond ETFs: I'm relatively new to most things investing and am still conducting my own research but can't figure this one out. From what I understand about bond prices is that their movement is inversely related to the movement of interest rates so you're better off buying bonds when interest rates are high and you expect them to lower in the future. As for Bond ETFs, they are funds that hold multiple bonds of varying grades, maturities, types etc. A Bond ETF will have a target average maturity that is maintained by the fund manager as they buy new bonds and sell off old ones. Therefore, my thoughts were that given the current high interest rates and the expectation that the Fed will cut and continue to cut rates over the next year or two, it would make sense to invest in Bond ETFs now. Additionally, it would make sense to invest in funds that have a duration of say 1-4 years which would capture the higher interest rates seen recently and would hold their value over the next few years even though rates are dropping then you could switch to a longer duration fund depending on the timeline of your goals and when rates reach neutral or lower. However, what I'm seeing is ALL Bond ETFs (BND, BNDX, LTL, VTEB, MUB, AGG etc) have dropped after the fed announced their 50 basis point cut, including long and short duration ETFs, corporate, municipal, and government bond ETFs. I know bond ETF prices are determined by the market like any other security that is publicly traded but shouldn't Bond ETFs be a more attractive investment to everyone as the rates drop? What am I missing here?
Also consider bond funds as opposed to dividend stocks. You can get tax-free income at roughly 3% from a municipal fund such as VTEB
I am working on structuring my index investments exactly as provided by [Wealthfront](https://www.wealthfront.com/explore/portfolios/core/classic). They have the following index funds - 1. US stocks Vanguard Total Stock Market ETF (VTI) 45% 2. Municipal bonds Vanguard Tax-Exempt Bond Index ETF (VTEB) 16% 3. Foreign developed stocks Vanguard FTSE Developed Markets ETF (VEA) 15% 4. Emerging market stocks Vanguard FTSE Emerging Markets ETF (VWO) 15% 5. Dividend growth stocks Vanguard Dividend Appreciation ETF (VIG) 9% I am a beginner in investments and am paranoid about buying the wrong index funds. Could someone please critically analyze these index funds for me?
Yeah thanks Ultimately this is what I went with. Mix of ETFs to cover different markets VOO majority then IDEV/VXUS second most. Then less amounts of VUG/AVUV/VWO/VTI and only 2% each of my portfolio into FALN/VTEB/SCHD which I’ll transition more to in 20-30 years
Bonds might have some taxable income in a taxable account, but so do money market funds, short term treasury ETFs, etc. You could, if you really wanted, use municiple bond funds that are federal income tax exempt like VTES or VTEB, however their yields may be low enough, depending on your tax bracket, that you'd come out ahead just having regular treasury bills/notes and paying the tax on the income. I use mostly 2-5 year treasury notes in my taxable account for money I might need/want to use in the next handful of years.
VUG and SCHG and QQQ are all Large cap growth ETFs. They are all basically the same investment. You should stick to VTI, VXUS, and BND/VTEB. I’ve been using Wealthfront’s portfolio and very happy with it.
MUB and VTEB are both solid. If you already have VTEB just add to that position. No compelling differentiator for HMOP.
That is my thought. My finance guy likes Hartford because we already have some VTEB. But - I don't see the point in diversifying into something with less value?
I have MUB very similar to VTEB, expense ratio of HMOP is much higher. Not familiar with Hartford ETFs but why pay more?
VTEB is where I put mine for a bit. Tax advantage helps if the income level is right. That or there are a few other bond funds that have high credit ratings and decent yields
I did this 3 years ago. VOO, VXUS,VTI. Most went to voo and picked up some VTEB in late 2023.
I have a brokerage account with Wealthfront that I recently stopped making regular contributions. I figured that weekly investment was better served going to max out the 401k for the year. Value is a little over 100k. Current mix at 9/10 risk score is: 45% US stocks (VTI) 18% foreign developed stocks (SCHF) 18% emerging market stocks (IEMG) 11% dividend growth (VIG) 09% municipal bonds (VTEB) No real timeline or goal for this money, just want it to continue to grow. If I expect to pause contributions for the next few years, how should I rebalance this account? My thought is to go heavy into dividends and let the reinvestments grow the account. Age mid 30s, also have a Roth that will keep getting max contribution. Thanks in advance.
I've transferred both T-bills and VTEB from Vanguard to Schwab. For individual T-bills, I just specified each CUSIP.
I bought VTEB awhile back. It is income tax exempt. The yields are lower as result. This only makes sense when you are in a higher tax bracket and the difference between the yield and your tax rate is large enough to get munis. I’m less sure on cap gains if you straight up sell.
I don't dismiss the fact that there are idiotic millionaires out there, especially boomers who prefer the old traditional investing methods. Or the greed of some fund managers overcharging for management fees. But I do think your views are biased. Last 10 years, nothing really outperformed tech and tech-heavy indices like QQQ, SPY, VTI, etc... all took off due to their tech-dominated weighting. If you use these as benchmark then of course the majority of funds are going to underperform because many of them are in more defensive sectors and if they don't have any of the M7, they are going to underperform. The majority of asset managers are more concerned about wealth preservation and downside risk management rather than growth because they will have to answer to people if their funds are wiped. Can you imagine having to answer to angry clients in 2022 when QQQ vaporized 40% of its NAV ? How about 2008 ? 2000 ? Even the majority of Vanguard funds underperformed QQQ/SPY/VTI: VT, BND, VTEB, VYM, VYMI, etc.... but I guess they all get a pass on Reddit because they got Vanguard in the names. Factor investing, 3 fund portfolio, small cap, etc... nothing really work in the past 10 years. Either you have tech or you are going to "underperform". If you truly want to escape out of this distortion of the current market, you need to look back further and evaluate how these funds perform during the downturn, rather than comparing returns. Because frankly, if returns are all you care for, nothing really beats crypto. But why don't people just YOLO 100% into cryptos ? You got your answers.
VTI and ITOT are essentially the same stock i would pick one or the other. I checked VTEB and MUB and it looks like they are basically the same too. I'm betting VWO and IEMG are near the same also. I would pick just one for these 3.
Thoughts on my portfolio? 23M for reference. Brokerage: - 32% VOO - 4% VTEB - 6% JEPI - 8% SCHD - 13% AMD - 24% AMZN - 6% GOOGL - 7% O Roth IRA: - 6% FSCSX - 8% VIG - 25% VOO - 7% JEPI - 11% SCHD - 33% AMZN - 8% META - 3% O
New investor- suggestions on portfolio New to investing, 34m, looking for long term growth. Will be putting ~500 in Wealthfront account. Please advise on any adjustments. VTI 45% VTEB 10% VWO 10% BOTZ. 10% VIG. 9% JEPI. 10% VEA 6%
Generally speaking, any security that has low turnover, low(ish) dividend yield, pays qualified dividends, etc is tax efficient enough. Here's an article on tax efficient investing: https://www.bogleheads.org/wiki/Tax-efficient_fund_placement I've considered VTMFX (essentially 50% VTI + 50% VTEB municipal bonds) in a single fund but I decided to just stick with my overall asset allocation of 80/20 stocks/cash equivalents across almost all accounts I have. Makes things simpler for me.
I prefer to match a vanguard target date fund. Something like this: 50% VTI 30% VXUS 20% BND or VTEB for taxable. You can go to vanguard.com and check out their various target date funds to get an idea of the stocks/bonds ratio and how much international is recommended.
Riding the VTEB train and VOO
Problem with target date funds for Non Qualified accounts is they have high turnover and distribute capital gains typically. One could use VTEB and SUB + VT or something though and adjust more to bonds each year to be more tax efficient
If it is in a brokerage acct - pick the amount you need over the next 2-3 years and keep it in cash. The rest - if IRA buy a target date index fund from Fidelity corresponding to your retirement date. If Non-Qualified funds buy VT + MUB or VTEB in proportion to your risk tolerance. 60/40, 75/25, 45/55, etc. You didnt say what you have in retirement accounts but Id focus on that rather than cash savings. I dont know your income or work history or anything else but generally you are going to benefit much more in a Traditional or Roth IRA.
Hi all. I am a total novice when it comes to investing. Recently, I decided to open an account at Wealthfront to take advantage of the automated investing product. Through my employer, I am able to get the first $75k managed for free. I'm currently contributing minimum $500/month, but usually more. I wanted to see if my portfolio makes sense given my age (33): US Stocks (ITOT) - 45% Foreign developed stocks (SCHF) - 18% Emerging markets (VWO) - 17% Dividend growth (DGRO) - 11% Municipal bonds (VTEB) - 9% Background: Location: US Age: 33 Employed: yes Salary: 195k base + approx. 100k RSU = 300k total 401k and Roth IRA maxed out No HSA Debt free Goal: build wealth for retirement Any advice would be greatly appreciated. Per Wealthfront this is a 9/10 aggressive portfolio. Unsure if this should be more conservative given my age, or if this is okay over the next 20 years or so.
Because that is a super shit fund. Something like MUB or VTEB is much more stable and diversified.
VTEB has a duration of 6 years. T Bills have a duration of less than a year. Right now T Bills pay more due to a historically rare inverted yield curve. The moment the yield curve returns to a more normal shape, all those T Bill yields will drop fast. You will be compensated in VTEB for declining yields via VTEB price appreciation. You are comparing apples to oranges. If you want a short term investment, T Bills make sense now. However, VTEB and MUB are not short term investments.
I think this is the correct place to post this question and I'll try to include all the relevant data. First off I'm 35 and my son is almost 3. I'm putting $7000 into a Wealthfront account and plan to add $200 each month to it that can be a help to him later whether it's for college or something else. Here is the breakdown it's currently going to be invested in. I'm wondering what everyone's thoughts on the security of this is? What I'm trying to avoid is buying something super risky that I don't realize is. I did Google all of these but am not super confident the ones chosen are the correct ones. A note about my overall thoughts/strategy: I think that as the dollar loses global reserve status the US market in general won't do well. Obviously it's anyone's guess as to whether that'll happen in 1, 10, or 50 years but it's the reason so little is in straight up US stocks and some gold/foreign stocks. XLU 15% GLD 15% VTI 10% VTEB 5% SCHP 10% VEA 25% VWO 15% VIG 5%
Keep it simple and keep it lower risk, especially since you admit to not having a lot of experience in the market. This probably means just avoid single stocks altogether and just stick to ETFs I can't give you too many detailed thoughts without knowing your goals, but high level 1. Probably get a nice dividend ETF since you'll want to retire relatively soon in your life. Some favorites here are SCHD, VYM. They are pretty safe and low expense. 2. If you want to potentially grow a little more, buy an S&P500 ETF. SPY or VOO are these. 3. Keep buying 3 month t-bills or put it in a high yield savings account. Anytime you can basically get above 3% risk free return it's nice, and those are between 4-5 right now. 4. As you get closer to retirement, maybe consider more bond ETFs for a passive income. You could definitely start with putting some here now as well. A tax exempt income one like VTEB might be nice for you since you're a high income earner. Even though the yields are much lower, it still might come out ahead of higher yielding ETFs for you. My 2C on how to start. You could keep most of it in a high yield account at a brokerage getting 4% right now. Maybe put 500k (total) to start in SCHD, VOO, VTEB, then invest another 50k a month to dollar cost average. The rest just gain your 4% in a high yield money market account while you dollar cost average in. Just remember stocks can go down and nobody can predict the future. There is a chance the first money you invest could be in the red for 3-12 months, but it (so far) has always gone up over time.
VTEB or MUB ETFs are an easy way to buy muni bonds.
PSA, TIPS only work when there is unexpected inflation. Absent that they (and everyone's fav of the year I Bonds) are a terrible asset class. Lots of duplication in the portfolio. MUB or VTEB over BND or AGG in Non Qualified accounts if you are going to grow the account significantly over a long time period.
New strategy to help you moving forward; VTI/VXUS blend or 100% VT for equities,add BND or a Treasury ETF like VGSH,or VTEB(Munis) if you’re looking to add bonds. Simple,straightforward ETF portfolio that’s low cost and diversified. Have a small “play” portfolio if you want to test stuff out. Go out and love your life after that If you’re still looking for a short term “strategy” to offset that 20K loss,then you haven’t learned your lesson.
I am 100% stocks (ETFs and Index) in both retirement and non retirement accounts as I don’t understand bonds yields. I look up BND, VTEB, LQD and see them in red on their 5y charts and I am like “No way, Jose, I am adding them to my portfolio” 😊
Muni Bonds 101 - planning for 2023 I am considering investing into Muni Bonds this year. In particular, I am at a higher tax bracket, and the market has really dived the last year, so I think it may be worth the tax free income and potential upside on the principal. I've realized the fees really add up on Muni bonds. If I pay an asset management fee of 0.65% plus expense ratios in many institutional level funds being close to 0.5%, if a fund nets 2.9% yield, I lose about 1.2 percent and only get a paltry 1.7% tax free. Based on this So a few questions * Is my understanding of my total expenses on the muni bonds correct? That I will lose a big portion of returns due to expenses in advisor fees and also expense fees? * If so, am I better off trying to invest into a lower cost Muni Fund directly with Vanguard, Schwab, etc.? I recognize will also likely have to pay state income taxes for buying a fund that is across many states. * Is there a difference in tax treatment between a muni bond fund and a muni etf? For Example VTEB and MUB are both muni bond etfs with low expenses. * Am I better off just putting the cash in wealthfront and paying taxes? Or any other alternatives others are considering Thank you in advance
I use Merrill Edge, also have a Fidelity account. For buy and hold investors, there is virtually no difference. If your account is over 100k, the rewards program with Merrill and BOA is amazing. I do 90% VTI 10% VTEB
>How would I go about buying muni's? VTEB, for example.
misc.invest.misc:55258 9 May 2017 To make money investing, buy low, compound, sell high, not as easy as it sounds. Prices are low precisely when noone has money to invest, including you. Then transaction costs can take as much as a third of your money, not just in fees, but also in missed opportunities, like price movements that take place in the time between your decision and execution. Investing in individual securities is probably too risky if you don't have enough money. But beware that a fund which diversifies your risk may cease to exist when it is so cheap it makes its organisers and brokers low fees. Indeed, brokers don't want you to buy low, because it cuts down their profits. Bagehot and Kindleberger long ago debunked them, but conspiratists still con gullible counterparties who they further con saying the theory failed not because it was wrong but because the market was rigged. And advisors have been burned by customers who overreact that they spend more of their time protecting themselves than helping their customers; Macchiavel long ago warned many will turn against their best friends if they feel they cost them money. Further many investors are confused by bonds which are cheap when the issuer is risky but the interest is high. A high yield ("junk") fund is fine for paying utility bills if you have relatively little time left to live. Deflation and depression imply negative interest rates, where the opportunity cost is not for holding, but spending, money; Negative rates may be concealed as extraordinarily high banking fees, but nonetheless cause a liquidity trap, which is the opposite of an inflationary spiral. Compounding involves exponential integrals, which are beyond most investor comprehension but which requires dividend reinvestment minimising transaction fees. Mutual funds have mutliple securities to spread risk. Exchange traded funds are mutual funds with fewer transaction costs. But funds could die long before their underlying securities. First you have a real estate ETF like RFI (5,20) into which you put money you anticipate to need for real estate, including taxes; It will go down when real estate goes down, but that is fine because so will the price of any real estate you want to buy: This is called hedging. Then you put your safest (most essential) funds into a municipal bond fund like VTEB (49,52): First it is tax free, then it is likely to be safer, although municipalities will go broke when interest rises; Again that is fine because other municipalities in the fund won't, and interest rates will rise to cover it. The municipal fund is the one you might derive income from and not reinvest (all?) the dividends. Then, depending on your age you get more of a growth fund like VUG (37,122) the younger or less risk averse you are, and a value fund like IWC (24,85) the older or more risk averse you are. You need to record the all-time highs and lows of these funds: If you have leftover income, invest it on the fund which is closest to its all-time low; If you need money (it is best not to touch your investments as the integral under a sine curve is zero) sell the one closest to its all-time high. Use the funds I used as a guide but pick your own funds, everything always changes and you may feel more comfortable with something else. Research them. ts on investing Date: Tue, 9 May 2017 To make money investing, buy low, compound, sell high, not as easy as it sounds. Prices are low precisely when noone has money to invest, including you. Then transaction costs can take as much as a third of your money, not just in fees, but also in missed opportunities, like price movements that take place in the time between your decision and execution. Investing in individual securities is probably too risky if you don't have enough money. But beware that a fund which diversifies your risk may cease to exist when it is so cheap it makes its organisers and brokers low fees. Indeed, brokers don't want you to buy low, because it cuts down their profits. Bagehot and Kindleberger long ago debunked them, but conspiratists still con gullible counterparties who they further con saying the theory failed not because it was wrong but because the market was rigged. And advisors have been burned by customers who overreact that they spend more of their time protecting themselves than helping their customers; Macchiavel long ago warned many will turn against their best friends if they feel they cost them money. Further many investors are confused by bonds which are cheap when the issuer is risky but the interest is high. A high yield ("junk") fund is fine for paying utility bills if you have relatively little time left to live. Deflation and depression imply negative interest rates, where the opportunity cost is not for holding, but spending, money; Negative rates may be concealed as extraordinarily high banking fees, but nonetheless cause a liquidity trap, which is the opposite of an inflationary spiral. Compounding involves exponential integrals, which are beyond most investor comprehension but which requires dividend reinvestment minimising transaction fees. Mutual funds have mutliple securities to spread risk. Exchange traded funds are mutual funds with fewer transaction costs. But funds could die long before their underlying securities. First you have a real estate ETF like RFI (5,20) into which you put money you anticipate to need for real estate, including taxes; It will go down when real estate goes down, but that is fine because so will the price of any real estate you want to buy: This is called hedging. Then you put your safest (most essential) funds into a municipal bond fund like VTEB (49,52): First it is tax free, then it is likely to be safer, although municipalities will go broke when interest rises; Again that is fine because other municipalities in the fund won't, and interest rates will rise to cover it. The municipal fund is the one you might derive income from and not reinvest (all?) the dividends. Then, depending on your age you get more of a growth fund like VUG (37,122) the younger or less risk averse you are, and a value fund like IWC (24,85) the older or more risk averse you are. You need to record the all-time highs and lows of these funds: If you have leftover income, invest it on the fund which is closest to its all-time low; If you need money (it is best not to touch your investments as the integral under a sine curve is zero) sell the one closest to its all-time high. Use the funds I used as a guide but pick your own funds, everything always changes and you may feel more comfortable with something else. Research them.
misc.invest.misc:55258 9 May 2017 To make money investing, buy low, compound, sell high, not as easy as it sounds. Prices are low precisely when noone has money to invest, including you. Then transaction costs can take as much as a third of your money, not just in fees, but also in missed opportunities, like price movements that take place in the time between your decision and execution. Investing in individual securities is probably too risky if you don't have enough money. But beware that a fund which diversifies your risk may cease to exist when it is so cheap it makes its organisers and brokers low fees. Indeed, brokers don't want you to buy low, because it cuts down their profits. Bagehot and Kindleberger long ago debunked them, but conspiratists still con gullible counterparties who they further con saying the theory failed not because it was wrong but because the market was rigged. And advisors have been burned by customers who overreact that they spend more of their time protecting themselves than helping their customers; Macchiavel long ago warned many will turn against their best friends if they feel they cost them money. Further many investors are confused by bonds which are cheap when the issuer is risky but the interest is high. A high yield ("junk") fund is fine for paying utility bills if you have relatively little time left to live. Deflation and depression imply negative interest rates, where the opportunity cost is not for holding, but spending, money; Negative rates may be concealed as extraordinarily high banking fees, but nonetheless cause a liquidity trap, which is the opposite of an inflationary spiral. Compounding involves exponential integrals, which are beyond most investor comprehension but which requires dividend reinvestment minimising transaction fees. Mutual funds have mutliple securities to spread risk. Exchange traded funds are mutual funds with fewer transaction costs. But funds could die long before their underlying securities. First you have a real estate ETF like RFI (5,20) into which you put money you anticipate to need for real estate, including taxes; It will go down when real estate goes down, but that is fine because so will the price of any real estate you want to buy: This is called hedging. Then you put your safest (most essential) funds into a municipal bond fund like VTEB (49,52): First it is tax free, then it is likely to be safer, although municipalities will go broke when interest rises; Again that is fine because other municipalities in the fund won't, and interest rates will rise to cover it. The municipal fund is the one you might derive income from and not reinvest (all?) the dividends. Then, depending on your age you get more of a growth fund like VUG (37,122) the younger or less risk averse you are, and a value fund like IWC (24,85) the older or more risk averse you are. You need to record the all-time highs and lows of these funds: If you have leftover income, invest it on the fund which is closest to its all-time low; If you need money (it is best not to touch your investments as the integral under a sine curve is zero) sell the one closest to its all-time high. Use the funds I used as a guide but pick your own funds, everything always changes and you may feel more comfortable with something else. Research them. ts on investing Date: Tue, 9 May 2017 To make money investing, buy low, compound, sell high, not as easy as it sounds. Prices are low precisely when noone has money to invest, including you. Then transaction costs can take as much as a third of your money, not just in fees, but also in missed opportunities, like price movements that take place in the time between your decision and execution. Investing in individual securities is probably too risky if you don't have enough money. But beware that a fund which diversifies your risk may cease to exist when it is so cheap it makes its organisers and brokers low fees. Indeed, brokers don't want you to buy low, because it cuts down their profits. Bagehot and Kindleberger long ago debunked them, but conspiratists still con gullible counterparties who they further con saying the theory failed not because it was wrong but because the market was rigged. And advisors have been burned by customers who overreact that they spend more of their time protecting themselves than helping their customers; Macchiavel long ago warned many will turn against their best friends if they feel they cost them money. Further many investors are confused by bonds which are cheap when the issuer is risky but the interest is high. A high yield ("junk") fund is fine for paying utility bills if you have relatively little time left to live. Deflation and depression imply negative interest rates, where the opportunity cost is not for holding, but spending, money; Negative rates may be concealed as extraordinarily high banking fees, but nonetheless cause a liquidity trap, which is the opposite of an inflationary spiral. Compounding involves exponential integrals, which are beyond most investor comprehension but which requires dividend reinvestment minimising transaction fees. Mutual funds have mutliple securities to spread risk. Exchange traded funds are mutual funds with fewer transaction costs. But funds could die long before their underlying securities. First you have a real estate ETF like RFI (5,20) into which you put money you anticipate to need for real estate, including taxes; It will go down when real estate goes down, but that is fine because so will the price of any real estate you want to buy: This is called hedging. Then you put your safest (most essential) funds into a municipal bond fund like VTEB (49,52): First it is tax free, then it is likely to be safer, although municipalities will go broke when interest rises; Again that is fine because other municipalities in the fund won't, and interest rates will rise to cover it. The municipal fund is the one you might derive income from and not reinvest (all?) the dividends. Then, depending on your age you get more of a growth fund like VUG (37,122) the younger or less risk averse you are, and a value fund like IWC (24,85) the older or more risk averse you are. You need to record the all-time highs and lows of these funds: If you have leftover income, invest it on the fund which is closest to its all-time low; If you need money (it is best not to touch your investments as the integral under a sine curve is zero) sell the one closest to its all-time high. Use the funds I used as a guide but pick your own funds, everything always changes and you may feel more comfortable with something else. Research them.
misc.invest.misc:55258 9 May 2017 To make money investing, buy low, compound, sell high, not as easy as it sounds. Prices are low precisely when noone has money to invest, including you. Then transaction costs can take as much as a third of your money, not just in fees, but also in missed opportunities, like price movements that take place in the time between your decision and execution. Investing in individual securities is probably too risky if you don't have enough money. But beware that a fund which diversifies your risk may cease to exist when it is so cheap it makes its organisers and brokers low fees. Indeed, brokers don't want you to buy low, because it cuts down their profits. Bagehot and Kindleberger long ago debunked them, but conspiratists still con gullible counterparties who they further con saying the theory failed not because it was wrong but because the market was rigged. And advisors have been burned by customers who overreact that they spend more of their time protecting themselves than helping their customers; Macchiavel long ago warned many will turn against their best friends if they feel they cost them money. Further many investors are confused by bonds which are cheap when the issuer is risky but the interest is high. A high yield ("junk") fund is fine for paying utility bills if you have relatively little time left to live. Deflation and depression imply negative interest rates, where the opportunity cost is not for holding, but spending, money; Negative rates may be concealed as extraordinarily high banking fees, but nonetheless cause a liquidity trap, which is the opposite of an inflationary spiral. Compounding involves exponential integrals, which are beyond most investor comprehension but which requires dividend reinvestment minimising transaction fees. Mutual funds have mutliple securities to spread risk. Exchange traded funds are mutual funds with fewer transaction costs. But funds could die long before their underlying securities. First you have a real estate ETF like RFI (5,20) into which you put money you anticipate to need for real estate, including taxes; It will go down when real estate goes down, but that is fine because so will the price of any real estate you want to buy: This is called hedging. Then you put your safest (most essential) funds into a municipal bond fund like VTEB (49,52): First it is tax free, then it is likely to be safer, although municipalities will go broke when interest rises; Again that is fine because other municipalities in the fund won't, and interest rates will rise to cover it. The municipal fund is the one you might derive income from and not reinvest (all?) the dividends. Then, depending on your age you get more of a growth fund like VUG (37,122) the younger or less risk averse you are, and a value fund like IWC (24,85) the older or more risk averse you are. You need to record the all-time highs and lows of these funds: If you have leftover income, invest it on the fund which is closest to its all-time low; If you need money (it is best not to touch your investments as the integral under a sine curve is zero) sell the one closest to its all-time high. Use the funds I used as a guide but pick your own funds, everything always changes and you may feel more comfortable with something else. Research them. ts on investing Date: Tue, 9 May 2017 To make money investing, buy low, compound, sell high, not as easy as it sounds. Prices are low precisely when noone has money to invest, including you. Then transaction costs can take as much as a third of your money, not just in fees, but also in missed opportunities, like price movements that take place in the time between your decision and execution. Investing in individual securities is probably too risky if you don't have enough money. But beware that a fund which diversifies your risk may cease to exist when it is so cheap it makes its organisers and brokers low fees. Indeed, brokers don't want you to buy low, because it cuts down their profits. Bagehot and Kindleberger long ago debunked them, but conspiratists still con gullible counterparties who they further con saying the theory failed not because it was wrong but because the market was rigged. And advisors have been burned by customers who overreact that they spend more of their time protecting themselves than helping their customers; Macchiavel long ago warned many will turn against their best friends if they feel they cost them money. Further many investors are confused by bonds which are cheap when the issuer is risky but the interest is high. A high yield ("junk") fund is fine for paying utility bills if you have relatively little time left to live. Deflation and depression imply negative interest rates, where the opportunity cost is not for holding, but spending, money; Negative rates may be concealed as extraordinarily high banking fees, but nonetheless cause a liquidity trap, which is the opposite of an inflationary spiral. Compounding involves exponential integrals, which are beyond most investor comprehension but which requires dividend reinvestment minimising transaction fees. Mutual funds have mutliple securities to spread risk. Exchange traded funds are mutual funds with fewer transaction costs. But funds could die long before their underlying securities. First you have a real estate ETF like RFI (5,20) into which you put money you anticipate to need for real estate, including taxes; It will go down when real estate goes down, but that is fine because so will the price of any real estate you want to buy: This is called hedging. Then you put your safest (most essential) funds into a municipal bond fund like VTEB (49,52): First it is tax free, then it is likely to be safer, although municipalities will go broke when interest rises; Again that is fine because other municipalities in the fund won't, and interest rates will rise to cover it. The municipal fund is the one you might derive income from and not reinvest (all?) the dividends. Then, depending on your age you get more of a growth fund like VUG (37,122) the younger or less risk averse you are, and a value fund like IWC (24,85) the older or more risk averse you are. You need to record the all-time highs and lows of these funds: If you have leftover income, invest it on the fund which is closest to its all-time low; If you need money (it is best not to touch your investments as the integral under a sine curve is zero) sell the one closest to its all-time high. Use the funds I used as a guide but pick your own funds, everything always changes and you may feel more comfortable with something else. Research them.
Some ETF maybe, VTEB. Also dumb and have no experience investing in munis tho.
Leveraged munis with a duration of 14 in a rising rate environment? This fund got crushed but might not be the best time to sell it at the bottom of the market. Intermeditate/shorter duration likr MUB or VTEB would be less volatile longer term.
Two views on tax-exempt bond funds for someone in Texas:(1) I didn't find any in a quick search, but I mostly focused on Vanguard since I know they offer several. (2) For diversification purposes, I wouldn't put everything in a state-specific bond fund. I have bought VTEB before, which might be interesting for you to check out: [https://investor.vanguard.com/investment-products/etfs/profile/vteb#price](https://investor.vanguard.com/investment-products/etfs/profile/vteb#price)
35 USA. ~250k in this brokerage account What started years ago as a simple three fund portfolio has spiraled into this monstrosity that overwhelms me when I want to buy more ETFs. A simple breakdown shows me at 85% stocks, 10% bonds and 5% short-term reserves. BND 12% GOVT 8% VB 4% VBR 3% VDE 15% VFMF 4% VO 4% VTEB 4% VTI 19% VUG 9% VWO 6% VXUS 12% I typically just dump money into VTI but is there a better fund I should be focusing on right now?
Awesome, thanks for info. I live in Texas so I was only worried about Federal. Am eyeing a position in VTEB for taxable
VTEB & TFI in my investment account. EMB & LQD in my IRA.
Ignore anyone suggesting high-yield dividend funds with zero mention that you’ll be paying tax on what will essentially be forced sales at your short-term capital gains rate, which would be based on your suddenly very high tax bracket. If it were me, I would put plenty in your emergency fund first, that amount again in a high-yield savings account, set aside $10K for Series I Bonds this year and another $10K for next year, and put the rest in a very tax-efficient fund like NTSX, or VOO with some VTEB exposure, Vanguard’s Tax-Exempt Bond ETF.
Set up accounts with a major brokerage and invest in low-cost index funds. I use Fidelity and InteractiveBrokers for my accounts, and buy ETFs such as VOO, VXUS, (equities) and VTEB. (Bonds) If you don't have a Roth IRA, make one and add $6k/year for that. It will grow tax-free.
I have zero wisdom in that area. I had a 2 year treasury note ladder until Jan 2020 when I moved over to a variety of mostly 1 year CDs. I do have BND and BNDX, but also VTEB (muni intermediate term) and VCSH (corporate intermediate) but they are all pretty ugly returns in this environment. Maybe someone else has some decent suggestions.
But was it owed all right then and there? I can imagine you could delay payment by at least 2-3 days to allow funds to settle if you had that money in a fund like VTEB, right?
Put it here VTEB. 2% yield and the best part is that the dividends are Federally tax exempt and potentially portions are state exempt as well.
The monthly payments for an individual bond are fixed regardless of whether the bond's duration is for 1 year or 5 years. A bond is a loan to an entity (government or corporate), where that entity pays the bondholder interest each month for the loan. Instead of buying bonds directly, you could consider bond funds (ETFs or mutual funds). I prefer Vanguard's offerings like BLV, VTEB, or VCLT. Generally, for bond funds, the volatility (e.g., risk) of a fund is proportional to its yield. A higher yield will likely equate to higher volatility in the bonds price.
Yup. There's a reason why Vanguard funds are so popular for investors, they know how to keep ERs low. And a great way to build a solid bedrock for a portfolio is a two-punch VTI/VXUS combo, with BND (or in taxable accounts, VTEB) gradually taking over in older age. Fidelity and Charles Schwab have also caught on, with broad-scale funds like FSKAX (total U.S.) and FTIHX (total international) having extremely cheap ERs as well. Actively managed funds, to me, just aren't worth it. Any speculation can be done much cheaper with passive sector funds or by casting a wide net at individual stocks/REITs, then leaving them alone for years.
If your percentages are correct, you're very heavy on ex-US I think, with 41%+ of the non-VTEB bond part of your portfolio as ex-US developed (SCHF is developed only). Then another 22% for emerging. Did you intend for the stock side to be over 60% ex-US?