Vanguard Total Bond fund for low tax bracket?

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ilan1h
Posts: 705
Joined: Mon Oct 22, 2007 3:40 pm

Vanguard Total Bond fund for low tax bracket?

Post by ilan1h » Wed Dec 06, 2017 1:18 am

I am looking for a fairly "safe" conservative fund for an octagenarian who will not need the money in the immediate future. This individual already has some money in CD's and cash and therefore I'm looking for something racier. The tax bracket is low and I was thinking that even a tax inefficient fund may be acceptable. I like the fact that the total bond fund has had reliable and reasonable returns over the years and does not appear to have any major draw downs. Obviously we are facing some interest rate hikes going forward but as has been discussed in these threads it's not an absolute contraindication to bond funds.

mhalley
Posts: 5192
Joined: Tue Nov 20, 2007 6:02 am

Re: Vanguard Total Bond fund for low tax bracket?

Post by mhalley » Wed Dec 06, 2017 2:23 am

I wouldn’t consider tbm to be racy. What is her need for the money? Maybe you could get real racy with something like tr income or lifestrategy conservative or Wellesley income.

ilan1h
Posts: 705
Joined: Mon Oct 22, 2007 3:40 pm

Re: Vanguard Total Bond fund for low tax bracket?

Post by ilan1h » Wed Dec 06, 2017 2:50 am

Actually, the bulk of her money is already with Wellesley. She just sold her house and I'm helping her invest the rest. Since Wellesley is already 30% stocks I was looking for something safer. I'm not sure that at her age she needs any more risk than that right now.

mega317
Posts: 1248
Joined: Tue Apr 19, 2016 10:55 am

Re: Vanguard Total Bond fund for low tax bracket?

Post by mega317 » Wed Dec 06, 2017 12:55 pm

Total Bond in a low bracket is fine. But having just sold her house is now completely irrelevant. The proceeds of the sale are the same as any other money. Invest the proceeds exactly according to the previous asset allocation unless you (she?) have made a conscious decision to change the AA.

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