Search found 6 matches

by oofoo2000
Tue Oct 10, 2017 9:11 pm
Forum: Personal Finance (Not Investing)
Topic: 1st United Credit Union 3% 3 year CD
Replies: 5
Views: 1693

Re: 1st United Credit Union 3% 3 year CD

Thanks for the heads up! I managed to open an account at the last minute. This is definitely a great deal!
by oofoo2000
Mon Apr 25, 2016 6:12 pm
Forum: Investing - Help with Personal Investments
Topic: Total Bond vs Municipal Bond Funds
Replies: 66
Views: 11411

Re: Total Bond vs Municipal Bond Funds

With tax considerations, the rationale is this: the market price (or yield) comparison of a taxable and a tax-exempt bond cannot possibly be right for an investor in the 0% tax bracket and an investor in a 35% tax bracket at the same time . One of those investors is getting a bad deal in at least o...
by oofoo2000
Mon Apr 25, 2016 2:40 pm
Forum: Investing - Help with Personal Investments
Topic: Total Bond vs Municipal Bond Funds
Replies: 66
Views: 11411

Re: Total Bond vs Municipal Bond Funds

In my opinion, the yield itself is the best indication of risk for market instruments. It' s true that this makes comparisons across tax regimes harder, but there's no way around it since nobody other than a highly sophisticated credit analyst will tell you when two funds (munis and taxable) are ac...
by oofoo2000
Mon Apr 25, 2016 10:18 am
Forum: Investing - Help with Personal Investments
Topic: Total Bond vs Municipal Bond Funds
Replies: 66
Views: 11411

Re: Total Bond vs Municipal Bond Funds

If I were in your situation, I would buy CDs (check depositaccounts.com) because they have a higher expected yield than government bond funds right now and you can potentially break the CD if interest rates go way up. I second the idea of using CDs, perhaps with a portion of your fixed income in a ...
by oofoo2000
Mon Apr 25, 2016 10:14 am
Forum: Investing - Help with Personal Investments
Topic: Total Bond vs Municipal Bond Funds
Replies: 66
Views: 11411

Re: Total Bond vs Municipal Bond Funds

when I calculate the equivalent yield of Vanguard California Intermediate Term Tax-Exempt (SEC Yield 1.29%) I get 2.057% = 1.29% / (1-0.28-0.093). Just to nitpick, but if you itemize deductions, you should use 0.093 x (1-0.28) as the state tax rate in the above calculation. This will lower the equi...
by oofoo2000
Sun Apr 24, 2016 10:39 pm
Forum: Investing - Help with Personal Investments
Topic: Total Bond vs Municipal Bond Funds
Replies: 66
Views: 11411

Total Bond vs Municipal Bond Funds

Hi Bogleheads, The general rule of thumb for when to use muni-bond funds rather than Total Bond is when you're in the 25% or sometimes the 28% tax bracket. In my case I'm in the 28% federal tax bracket and the 9.3% california state tax bracket so I thought its quite likely that I should be using mun...