ramsfan wrote:The advice so far on emerging markets is spot on.
Someone else mentioned that you should work hard to NOT hold bonds in taxable accounts, as they are not tax efficient.
Assuming you are happy with your overall allocations, then it is easy sell stock funds in IRA/401k accounts, and replace with bond funds and sell bond funds in taxable accounts and replace with stock funds.
ALso, for remaining bonds you may have in taxable, consider Muni Bond Funds.
mhc wrote:The first fund you listed is not a bond fund. It is a cash fund. The 3rd one listed (core bond) is the bond fund you would want to use.
Selling in a 401k is not a taxable event.
The bond fund in your taxable account probably does not have significant cap gains. You would have to check though.
Sell the bond fund in taxable and buy S&P500 or Total Stock Market. Use Total Stock Market if you are not currently using an extended market or small cap fund to compliment the S&P500 fund.
Sell the S&P500 hundred fund in 401k and buy the core bond fund.
Just make sure you maintain your desired AA.
spsbo1 wrote:Thanks for the advice.ramsfan wrote:All good advice above. your first step is to check to see what (if any) cap gains or losses you may have with the bond fund in your taxable account. I agree with mhc that they will likely not be significant, but you should check.ramsfan wrote:
I've checked re: capital gains on my taxable account and if I convert my bond funds to stock index funds I will realize about $2615 in capital gains.
You guys still think this is worth it given I'm in for the long haul? Should I just bite the bullet and do this?
baw703916 wrote:Given the awful E/R of the 401k bond fund offering, might it not be better for the OP to just switch to the Vanguard NY Tax-exempt Bond Fund (VNYTX) in his taxable account instead? The usual argument against holding tax-exempt bonds compared to taxable bonds in a retirement account is that one pays a penalty in lower yield. But a 0.87% difference in E/R between the 401k bond fund and the admiral class of the Vanguard NY bond fund is an impossible hurdle to overcome, at least in the current interest rate environment.
learning_head wrote: if yields ever go up on bond funds, that means their prices will go down in taxable account, and you will be able to tax-harvest the losses and move bonds to tax-advantaged account later if you decide to do so...
I am 41, live in NYC, earn approximately $150K pa depending on bonus's and am paying off my apt with my partner
spsbo1 wrote:Hi guys,
OK, I've spoken to our 401K guy and he said I have the following options for bonds if I want them:
EVGOX ER 1.14%
IPFIX ER 0.96%
Either of these a contender do you think?
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