VCAIX to VCTXX

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kmn99
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Joined: Mon Dec 03, 2018 7:09 pm

VCAIX to VCTXX

Post by kmn99 » Wed Dec 12, 2018 3:59 pm

With rising interest rates and the endless talk of impending recession in 2019, I am thinking of moving my entire balance from VCAIX to VCTXX. What do you experts say?

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Taylor Larimore
Advisory Board
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Location: Miami FL

Re: VCAIX to VCTXX

Post by Taylor Larimore » Wed Dec 12, 2018 4:06 pm

kmn99 wrote:
Wed Dec 12, 2018 3:59 pm
With rising interest rates and the endless talk of impending recession in 2019, I am thinking of moving my entire balance from VCAIX to VCTXX. What do you experts say?
knm99:

It will be helpful if you include the ticker names. Few of us (including me) have memorized ticker symbols.

Edit your post using the little box in the upper right corner of your post.

Thank you and best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

bluquark
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Re: VCAIX to VCTXX

Post by bluquark » Wed Dec 12, 2018 4:13 pm

For reference, VCAIX is California intermediate-term tax-exempt and VCTXX is California money market.

The usual Boglehead advice is not to time the market and that includes the bond market. And VCAIX is already a conservative enough bond choice, the duration is only 5 years or so. I see no reason to complicate your financial life by needing to decide on a time to get back into bonds.

And keep in mind there is a positive side to interest rate risk as well. If market participants are currently overconfident about imminent rate rises because of all the same information that makes you think it will happen, VCAIX may actually rise if that doesn’t pan out.

If this is partly for TLH, I’d suggest using national tax-exempt as a TLH partner instead of money market.

Topic Author
kmn99
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Joined: Mon Dec 03, 2018 7:09 pm

Re: VCAIX to VCTXX

Post by kmn99 » Wed Dec 12, 2018 8:59 pm

Okay. Thank you

Topic Author
kmn99
Posts: 26
Joined: Mon Dec 03, 2018 7:09 pm

Re: VCAIX to VCTXX

Post by kmn99 » Sat Jan 12, 2019 1:50 am

Just wanted to confirm that
Vanguard Intermediate-Term Tax-Exempt Fund Investor Shares (VWITX) will be OKAY as TLH partner for VCAIX(Vanguard California Intermediate-Term Tax-Exempt Fund Investor Shares) .

RCL
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Joined: Sat Jul 05, 2014 2:48 am

Re: VCAIX to VCTXX

Post by RCL » Sat Jan 12, 2019 1:52 am

kmn99 wrote:
Sat Jan 12, 2019 1:50 am
Just wanted to confirm that
Vanguard Intermediate-Term Tax-Exempt Fund Investor Shares (VWITX) will be OKAY as TLH partner for VCAIX(Vanguard California Intermediate-Term Tax-Exempt Fund Investor Shares) .
No problems here. One is state specific fund and the other is a national fund
It Is Best To Consult Others Before Taking Unusual Actions

Topic Author
kmn99
Posts: 26
Joined: Mon Dec 03, 2018 7:09 pm

Re: VCAIX to VCTXX

Post by kmn99 » Sat Jan 12, 2019 1:56 am

Thank you

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