Bond fund in taxable account

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Topic Author
Tatupu
Posts: 38
Joined: Fri Aug 10, 2007 1:17 pm

Bond fund in taxable account

Post by Tatupu »

Greetings All,

Longtime lurker, infrequent poster seeking advice.

Due to my ignorance prior to discovering the Boglehead way of investing, about 10% of my retirement portfolio is bonds in a taxable account (VG Inter-Term Bond Index Fund). I am overweighted in bonds and would like to convert the bonds in my taxable account into 2009 Roth contributions for my both my spouse and myself. The Roth money will be invested in equities to get closer to my desired asset allocation.

Would this be a wise move just moving the money all at once, or is there a better way to eventually move this bond fund investment out of the taxable account?

The overall plan is to have all my bond holdings represented by my TSP G fund and TIPS holdings in a rollover IRA.

Any other suggestions on what to do with this holding?

Thanks in advance for your valuable insight and thoughts/suggestions!
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Dan Kohn
Posts: 1505
Joined: Tue Jun 26, 2007 12:15 am
Location: New York, NY
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Go ahead

Post by Dan Kohn »

If you're ready to switch your portfolio, it's likely fine to sell your bonds and move to the portfolio allocation you want for the long term. If you had significant appreciation on your bonds, you could wait for one year holding to get long term capital gains tax treatment. Otherwise, go ahead and sell and move it to the IRA.
Topic Author
Tatupu
Posts: 38
Joined: Fri Aug 10, 2007 1:17 pm

Post by Tatupu »

Dan -- thanks for the reply. Cheers!
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