Search found 40 matches

by underwood
Wed Mar 22, 2017 6:27 pm
Forum: Investing - Theory, News & General
Topic: VWIUX SEC vs Distribution yield [Vanguard Int-Term Tax-Exempt]
Replies: 29
Views: 2270

Re: VWIUX SEC vs Distribution yield [Vanguard Int-Term Tax-Exempt]

In a scenario like this, having a bond fund like VWIUX that targets a duration of ~5 years, can’t engage in a barbell strategy to take advantage of a flattening yield curve. Sure they can. The target duration may be about 5 years, but as of 2/28/2017 they held about 41% in 20-30 year maturities, an...
by underwood
Wed Mar 22, 2017 10:03 am
Forum: Investing - Theory, News & General
Topic: VWIUX SEC vs Distribution yield [Vanguard Int-Term Tax-Exempt]
Replies: 29
Views: 2270

Re: VWIUX SEC vs Distribution yield [Vanguard Int-Term Tax-Exempt]

Personally I wouldn't ask the advisor anything, but just use the Vanguard fund. However, if you want to discuss it with your advisor, I've already elaborated at length on the bond characteristics you want to use to compare a bond fund to a bond ladder (average YTM or SEC yield, average duration, av...
by underwood
Tue Mar 21, 2017 9:38 am
Forum: Investing - Theory, News & General
Topic: VWIUX SEC vs Distribution yield [Vanguard Int-Term Tax-Exempt]
Replies: 29
Views: 2270

Re: VWIUX SEC vs Distribution yield [Vanguard Int-Term Tax-Exempt]

Personally I wouldn't ask the advisor anything, but just use the Vanguard fund. However, if you want to discuss it with your advisor, I've already elaborated at length on the bond characteristics you want to use to compare a bond fund to a bond ladder (average YTM or SEC yield, average duration, av...
by underwood
Sun Mar 19, 2017 8:32 pm
Forum: Investing - Theory, News & General
Topic: VWIUX SEC vs Distribution yield [Vanguard Int-Term Tax-Exempt]
Replies: 29
Views: 2270

Re: VWIUX SEC vs Distribution yield [Vanguard Int-Term Tax-Exempt]

Kevin; Thanks for helping me gain perspective; slowly it is all beginning to make more sense! So I just wouldn't get too hung up on trying to compare distribution yield of a fund to coupon payments minus premium amortization for individual bonds. I'd mainly focus on yield (to maturity) vs. risk (cre...
by underwood
Sun Mar 19, 2017 10:18 am
Forum: Investing - Theory, News & General
Topic: VWIUX SEC vs Distribution yield [Vanguard Int-Term Tax-Exempt]
Replies: 29
Views: 2270

Re: VWIUX SEC vs Distribution yield [Vanguard Int-Term Tax-Exempt]

Kevin; Thanks so much for the response and helping me along the learning curve. Clearly I have a long way to go. A couple of comments. The coupon payment from a bond is the interest cashflow. The gradual reduction in market price as the bond approaches maturity is not "return of principle"...
by underwood
Fri Mar 17, 2017 10:51 pm
Forum: Investing - Theory, News & General
Topic: VWIUX SEC vs Distribution yield [Vanguard Int-Term Tax-Exempt]
Replies: 29
Views: 2270

Re: VWIUX SEC vs Distribution yield [Vanguard Int-Term Tax-Exempt]

I'm not recommending that you buy individual munis, but are you sure about this? With a search of muni bonds with credit rating AA (about the average for the fund), I find a bond with these numbers: 6.00% coupon 2.78% ytm 8.22 years to maturity Kevin; thanks for the thoughtful response. I greatly a...
by underwood
Wed Mar 15, 2017 9:26 pm
Forum: Investing - Theory, News & General
Topic: VWIUX SEC vs Distribution yield [Vanguard Int-Term Tax-Exempt]
Replies: 29
Views: 2270

Re: VWIUX SEC vs Distribution yield [Vanguard Int-Term Tax-Exempt]

Thanks for the excellent replies, and Kevin thanks for the links to other threads on this topic. Very helpful. For me this question came up starting about a year ago when my advisor suggested selling my VWIUX to buy individual bonds. As we got further into the details it appeared to me that moving t...
by underwood
Wed Mar 15, 2017 12:12 pm
Forum: Investing - Help with Personal Investments
Topic: Help deciding between bond fund or individual bonds
Replies: 3
Views: 253

Help deciding between bond fund or individual bonds

Heading toward retirement and looking to increase my bond holdings, specifically muni bonds. This is a long term hold investment; I am looking to earn income from the cash flows, not on price movements , and while you never know, I do not foresee a need for liquidity for this investment for the fore...
by underwood
Wed Mar 15, 2017 11:29 am
Forum: Investing - Theory, News & General
Topic: VWIUX SEC vs Distribution yield [Vanguard Int-Term Tax-Exempt]
Replies: 29
Views: 2270

Re: VWIUX SEC vs Distribution yield [Vanguard Int-Term Tax-Exempt]

Thanks for the replies; However, do you really want to look at cash flow this way? If you have an investment which is guaranteed to lose principal, spending the cash flow is effectively invading the principal even if you don't actually sell any shares. I want to look at the cash flows in a way that ...
by underwood
Tue Mar 14, 2017 9:08 pm
Forum: Investing - Theory, News & General
Topic: VWIUX SEC vs Distribution yield [Vanguard Int-Term Tax-Exempt]
Replies: 29
Views: 2270

VWIUX SEC vs Distribution yield [Vanguard Int-Term Tax-Exempt]

Does anyone know a source for the historic (past ten years) SEC yield for VWIUX? The distribution yield is available on the Vanguard site, but not the SEC yield. I am interested in seeing how the distribution yield has compared to the SEC yield over time. For the past couple of years it has stayed w...
by underwood
Tue Nov 29, 2016 7:09 pm
Forum: Investing - Help with Personal Investments
Topic: Help with tax loss harvesting Vanguard Intermediate Muni Bond Fund; alternative fund suggestions
Replies: 6
Views: 706

Re: Help with tax loss harvesting Vanguard Intermediate Muni Bond Fund; alternative fund suggestions

thanks for responses. I will check out VMLUX.

Any thoughts on using VWAHX; It is higher yield so would expect greater volatility but the yield is attractive.
by underwood
Tue Nov 29, 2016 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Help with tax loss harvesting Vanguard Intermediate Muni Bond Fund; alternative fund suggestions
Replies: 6
Views: 706

Help with tax loss harvesting Vanguard Intermediate Muni Bond Fund; alternative fund suggestions

I am looking to harvest some losses that I now have in VWIUX; and looking for suggestions of alternative funds or ETF to move into. Criteria for selecting the alternative fund/ETF are a) close tracking with VWIUX NAV/Share price b)similar credit quality and duration and c)similar TTM yields. One pos...
by underwood
Tue Nov 15, 2016 7:37 pm
Forum: Investing - Help with Personal Investments
Topic: Muni Bond Yields..how high will they go
Replies: 5
Views: 987

Re: Muni Bond Yields..how high will they go

Why would you expect massive amounts of new muni debt to be issued to finance infrastructure spending? If you're referring to infrastructure spending as part of the new president's agenda, wouldn't that money come from the Federal government? Some articles suggest that most of the spending would oc...
by underwood
Tue Nov 15, 2016 5:54 pm
Forum: Investing - Help with Personal Investments
Topic: Muni Bond Yields..how high will they go
Replies: 5
Views: 987

Muni Bond Yields..how high will they go

Trying to get my arms around where muni bond yields may be headed. How much of an increase in muni bond yields would you anticipate assuming a) Tax Reform lower personal tax rates (for argument sake lets say from an average of 38% to 28%), and b) tons of new debt is issued to pay for massive infrast...
by underwood
Sun Nov 13, 2016 6:28 pm
Forum: Investing - Help with Personal Investments
Topic: Imact to Muni's from tax reform and increased infrastructure spending.
Replies: 2
Views: 568

Imact to Muni's from tax reform and increased infrastructure spending.

What are the likely impacts to Muni yields moving forward as a result of lower personal tax rates and lots of new debt issued to finance large infrastructure projects? I would assume yields would have to go up to balance the the reduced tax benefits, and lots of new debt will need to attract investo...
by underwood
Thu Nov 03, 2016 11:49 am
Forum: Investing - Help with Personal Investments
Topic: Understanding spread between bond fund SEC yield and Distribution Yield
Replies: 8
Views: 1355

Understanding spread between bond fund SEC yield and Distribution Yield

I currently hold Vanguard Intermediate Term Bond Fund (VWIUX). My advisor has suggested moving to a ladder of individual bonds for a number of reasons including greater overall yield. To compare the VWIUX to the proposed ladder I did a simple 10 year IRR analysis, and my analysis did not support my ...
by underwood
Wed Feb 03, 2016 9:44 pm
Forum: Investing - Help with Personal Investments
Topic: Muni bond ladder vs fund for large $$$$
Replies: 42
Views: 4095

Re: Muni bond ladder vs fund for large $$$$

At least take a look at the white paper published by Vanguard years ago. I think it's a fair representation of pros and cons. It's also pretty clear and easy to understand. http://www.vanguard.com/pdf/icrmb.pdf Excellent read. Would love to hear the rebuttal from those that feel actively managed wi...
by underwood
Wed Feb 03, 2016 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: Muni bond ladder vs fund for large $$$$
Replies: 42
Views: 4095

Re: Muni bond ladder vs fund for large $$$$

Underwood: just for the record, although I tried to answer the question you asked, I hope you also talk to someone about how to combat inflation. A bond ladder makes sense, IMO, to cover basic living expenses. But, I'd consider using the rest of the investment pool for investments which could prote...
by underwood
Tue Feb 02, 2016 8:58 pm
Forum: Investing - Help with Personal Investments
Topic: Muni bond ladder vs fund for large $$$$
Replies: 42
Views: 4095

Re: Muni bond ladder vs fund for large $$$$

I second the earlier suggestions to PM Mr. Swedroe; while he avoids any type of business solicitation on this Forum (Yeah!), he's really generous with his time.


Thanks for the suggestion. How do I PM Mr. Swedroe?
by underwood
Tue Feb 02, 2016 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: How to compare "Yields" between bond fund and bond ladder?
Replies: 14
Views: 1058

Re: How to compare "Yields" between bond fund and bond ladder?

Thanks for all the great input. I thank the question you are asking should be: Can a custom actively managed bond portfolio provided me with a better risk / return profile that better matches my need than a generic bond fund? Yes, this is another good corollary question. My needs are basically achie...
by underwood
Tue Feb 02, 2016 1:43 pm
Forum: Investing - Help with Personal Investments
Topic: Muni bond ladder vs fund for large $$$$
Replies: 42
Views: 4095

Re: Muni bond ladder vs fund for large $$$$

Thanks for all great input. Lots of food for thought. "The question is will the actively managed ladder pay back the extra expense through superior performance?" That is the question, isn't it Yes this is at the heart of the issue. In theory if the muni bond market is efficient and there i...
by underwood
Mon Feb 01, 2016 3:54 pm
Forum: Investing - Help with Personal Investments
Topic: How to compare "Yields" between bond fund and bond ladder?
Replies: 14
Views: 1058

Re: How to compare "Yields" between bond fund and bond ladder?

Thanks for the replies; very helpful. You don't use a bond ladder to boost yields. You use it to guarantee a particular sequence of cash flow. If all you care about is yields, you should be investing in bond funds. In general, the difference in yield will be a function of the difference in durations...
by underwood
Mon Feb 01, 2016 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: How to compare "Yields" between bond fund and bond ladder?
Replies: 14
Views: 1058

How to compare "Yields" between bond fund and bond ladder?

Picking up on a earlier post ; http://www.bogleheads.org/forum/viewtopic.php?f=1&t=183509 I am looking to compare the performance of a bond ladder to a bond index fund. The bond index (VWIUX) has two published yields (that I have been able to find online); the SEC Yield (currently 1.55%) and the...
by underwood
Mon Feb 01, 2016 12:27 pm
Forum: Investing - Help with Personal Investments
Topic: Fund/ETF's to use for tax loss harvesting from Vanguard funds
Replies: 8
Views: 563

Re: Fund/ETF's to use for tax loss harvesting from Vanguard funds

The replacement funds are not substantially identical. For example, Total International Stock Market Index holds 6005 stocks and tracks an ALL cap index vs FTSE All World ex-US which holds 2520 stocks and tracks All World ex-US index which does not include small cap. Here's a link to a page at Fair...
by underwood
Sun Jan 31, 2016 9:29 pm
Forum: Investing - Help with Personal Investments
Topic: Fund/ETF's to use for tax loss harvesting from Vanguard funds
Replies: 8
Views: 563

Re: Fund/ETF's to use for tax loss harvesting from Vanguard funds

You TLH and exchange into your vanguard replacement funds without friction and time out of market. If you decide to go with ETFs or the Fidelity fund, you'd have have some time out of market a) when you first TLH and b) again when you switch back to your original holding. I'd keep it with Vanguard ...
by underwood
Sun Jan 31, 2016 9:13 pm
Forum: Investing - Help with Personal Investments
Topic: Fund/ETF's to use for tax loss harvesting from Vanguard funds
Replies: 8
Views: 563

Re: Fund/ETF's to use for tax loss harvesting from Vanguard funds

Can anyone explain what is the rule of thumb for tax loss harvesting? I'd like to learn more.


https://www.bogleheads.org/wiki/Tax_loss_harvesting
by underwood
Sun Jan 31, 2016 9:08 pm
Forum: Investing - Help with Personal Investments
Topic: Fund/ETF's to use for tax loss harvesting from Vanguard funds
Replies: 8
Views: 563

Re: Fund/ETF's to use for tax loss harvesting from Vanguard funds

VWIUX Intermediate term tax exempt -> VMLUX Limited Term tax exempt VTIAX Total International -> VFWAX FTSE All World ex-US VTSAX Total Stock Market -> VLCAX Large Cap Index -> VFIAX 500 Index Thanks for the excellent suggestions which keeps it all in the Vanguard funds. From a tax risk perspective...
by underwood
Sun Jan 31, 2016 8:39 pm
Forum: Investing - Help with Personal Investments
Topic: Fund/ETF's to use for tax loss harvesting from Vanguard funds
Replies: 8
Views: 563

Fund/ETF's to use for tax loss harvesting from Vanguard funds

Looking to tax loss harvest for the first time. I would appreciate recommendations on equivalent funds or ETF's I could use to move out of the Vanguard funds for the purpose of tax loss harvesting. From VWIUX (intermediate term muni) to ?? From VTIAX (total international equities) to ?? From VTSAX (...
by underwood
Sun Jan 31, 2016 3:38 pm
Forum: Investing - Help with Personal Investments
Topic: Muni bond ladder vs fund for large $$$$
Replies: 42
Views: 4095

Re: Muni bond ladder vs fund for large $$$$

Maintaining an active bond ladder requires analytical skills and a lot of work. How much time do you plan to spend on finding replacements for matured/called bonds? How about re-investments of income not needed for current consumption? Are you comfortable with reading official offering statements t...
by underwood
Sun Jan 31, 2016 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: Muni bond ladder vs fund for large $$$$
Replies: 42
Views: 4095

Re: Muni bond ladder vs fund for large $$$$

With that amount of money, I would just contact Larry's firm (Buckingham Asset Management). They will manage your portfolio for less that the 20bps you are talking about Did a quick check and what I could find online suggest that BAM fees are in the 35-100 bps range. Can you point me toward info th...
by underwood
Sun Jan 31, 2016 3:01 pm
Forum: Investing - Help with Personal Investments
Topic: Muni bond ladder vs fund for large $$$$
Replies: 42
Views: 4095

Re: Muni bond ladder vs fund for large $$$$

With that amount of money I'd order a copy of Swedroe's book, The Only Guide to a Winning Bond Strategy... With that amount of money, I would just contact Larry's firm (Buckingham Asset Management). They will manage your portfolio for less that the 20bps you are talking about. Thanks; I will lookin...
by underwood
Sun Jan 31, 2016 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: Muni bond ladder vs fund for large $$$$
Replies: 42
Views: 4095

Muni bond ladder vs fund for large $$$$

I know that lots have been written on this topic, of which I have read a lot: unfortunately I am still unclear which would be best in my situation. My situation; I have +$20M which I plan on investing in muni's; the cash-flows generated will be used to pay for living expenses (~50% of the cashflow);...
by underwood
Tue Mar 27, 2012 7:12 pm
Forum: Investing - Help with Personal Investments
Topic: Tax advantaged Lazy man portfolio
Replies: 17
Views: 2137

Re: Tax advantaged Lazy man portfolio

Thanks for all the replies! Taxable account + 2.5% WR + Lazy => 100% Tax-Managed Balanced Index fund portfolio is hard to improve in any significant way. I like simple and if one fund can provide the same long term return and low volatility then why not. But the impression I have gotten from reading...
by underwood
Sun Mar 25, 2012 9:03 pm
Forum: Investing - Help with Personal Investments
Topic: Tax advantaged Lazy man portfolio
Replies: 17
Views: 2137

Re: Tax advantaged Lazy man portfolio

If you want specific advice you probably need to say what state you are in and what state you expect to be in over time (if they differ). Washington State Your desired withdrawal rate is low enough that you could come close with bonds. Yes but would 100% bond portfolio provide greater 40yr survival...
by underwood
Sun Mar 25, 2012 7:09 pm
Forum: Investing - Help with Personal Investments
Topic: Tax advantaged Lazy man portfolio
Replies: 17
Views: 2137

Re: Tax advantaged Lazy man portfolio

I can't wait for someone to tackle this one.


Me also! I hoping others with more experience and knowledge than I will be willing to respond. Is it an unreasonable question to ask?
by underwood
Sun Mar 25, 2012 6:38 pm
Forum: Investing - Help with Personal Investments
Topic: Tax advantaged Lazy man portfolio
Replies: 17
Views: 2137

Tax advantaged Lazy man portfolio

Looking for recommendations for a lazy man portfolio (with no more than 8 asset classes) which will be held in a taxable account . I look to withdraw ~$250K/yr (approx 2.5% of total) from the account (adjusted for inflation for the next 40 years). I do not anticipate other income sources but at this...
by underwood
Mon Mar 12, 2012 5:26 pm
Forum: Investing - Help with Personal Investments
Topic: cash flow vs reinvesting interest from tax free bonds
Replies: 2
Views: 273

cash flow vs reinvesting interest from tax free bonds

Could use some help in deciding on most tax efficient use of dividends & interest for my portfolio. Assume you had a $10M portfolio. 50% stock fund index / 50% bond fund index all held in a taxable account. Further assume that the bond fund is tax exempt so that the interest can be taken tax fre...
by underwood
Wed Feb 29, 2012 6:30 pm
Forum: Investing - Help with Personal Investments
Topic: Importance of tax managed; VTMFX
Replies: 6
Views: 1105

Re: Importance of tax managed; VTMFX

Return of capital is tax-free, so if your "main portfolio" is sitting in a money market fund earning nothing, you can withdraw $250,000 a year from it without paying any taxes. Or if your main portfolio is a stock index fund, maybe $200,000 of the $250,000 is return of capital and the $50...
by underwood
Wed Feb 29, 2012 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: Importance of tax managed; VTMFX
Replies: 6
Views: 1105

Importance of tax managed; VTMFX

I am new to this forum and just jumping on the learning curve. My question pertains to the relative importance of tax efficiency when designing a portfolio using primarily index funds or ETF's. I currently am in a high tax bracket due to salary. Post retirement (a couple of years) I anticipate withd...

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