suggestions for short term bond fund

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dave1054
Posts: 129
Joined: Wed Apr 01, 2009 7:50 am

suggestions for short term bond fund

Post by dave1054 » Fri Mar 17, 2017 8:48 pm

I am in highest tax bracket. Looking for bond fund with 2-4 year duration. Better to go with corporate
or muni fund? Any recommendations?
Any thoughts on whether active manager is worth the cost in a bond fund?

lack_ey
Posts: 6701
Joined: Wed Nov 19, 2014 11:55 pm

Re: suggestions for short term bond fund

Post by lack_ey » Fri Mar 17, 2017 9:08 pm

Muni. If you use corporate, only in tax-advantaged or possibly in taxable in lower tax brackets, depending.

Active manager depends on the cost and the manager. Best for the category is probably Vanguard Limited-Term Tax-Exempt Fund Admiral Shares ($50k minimum, or $3k minimum with the investor shares with higher ER by 0.10%), with ER = 0.09%.

Dontridetheindexdown
Posts: 91
Joined: Sat Feb 14, 2015 10:08 pm

Re: VBIRX

Post by Dontridetheindexdown » Fri Mar 17, 2017 9:14 pm

The most successful people I know use VBIRX - low risk, low volatility, sleep well at night.

If indeed you are in the highest tax bracket, rate of return is far less important than safety and liquidity, especially for short-term bonds.

sschoe2
Posts: 463
Joined: Fri Feb 24, 2017 4:42 pm

Re: suggestions for short term bond fund

Post by sschoe2 » Fri Mar 17, 2017 9:51 pm

VBIRX is yielding ~1.5%. For that little you might as well do CD's. I get 1% on my savings account.

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Munir
Posts: 2567
Joined: Mon Feb 26, 2007 4:39 pm
Location: Oregon

Re: suggestions for short term bond fund

Post by Munir » Sat Mar 18, 2017 1:16 am

VFSUX- Vanguard Short Term Investment Grade

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