Switch bond funds later?

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Switch bond funds later?

Post by l1am » Wed Sep 12, 2018 12:43 am

Right now I have a high enough marginal fed tax rate to warrant investing in VWIUX in a taxable account.

Suppose in a year or two I moved to a new job with a lower marginal rate, where it would make sense to switch to VBTLX.

Is that something that's possible? I guess I'd just have to pay capital gains if the bond value had increased?

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Re: Switch bond funds later?

Post by PFInterest » Wed Sep 12, 2018 7:02 am

possible yes, you just sell and pay the taxes or claim the losses.

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Re: Switch bond funds later?

Post by grabiner » Wed Sep 12, 2018 7:36 pm

Yes, you would pay tax on any capital gains if you switch bond funds. However, bond funds don't tend to have much in capital gains, so any tax cost for switching should be very low.
Wiki David Grabiner

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