TLH Vanguard Short Term Investment Grade Bond Fund

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JohnT
Posts: 11
Joined: Wed Sep 08, 2010 12:28 pm

TLH Vanguard Short Term Investment Grade Bond Fund

Post by JohnT » Wed Nov 07, 2018 6:06 pm

I have $1000 loss in Vanguard VBSTX ($38,000 total) in a taxable account.

This fund serves as both my emergency fund and a source of $7000 income each year in addition to Social Security and a pension to fund my retirement (age 74).

My portfolio is 70% Bond (this fund in a taxable account + Total Bond Market in a non taxable account) / 30% Stock (Total Stock Market in this same taxable account as VBSTX).

It seems reasonable to tax loss harvest. What should I do?

(1) Temporarily park the funds in the Prime Money Market and then exchange back?

(2) Temporarily exchange the funds for the Short Term Bond Fund Index VBISX and then exchange back? Would this pass the "Wash Test?

(3) Given the performance of VBSTX, permanently park the funds in the Prime Money Market.

(4) Do something else?

Thank you.

plumberboy
Posts: 32
Joined: Tue Nov 11, 2014 9:25 am
Location: Northern Indiana

Re: TLH Vanguard Short Term Investment Grade Bond Fund

Post by plumberboy » Thu Nov 08, 2018 9:04 am

JohnT wrote:
Wed Nov 07, 2018 6:06 pm
I have $1000 loss in Vanguard VBSTX ($38,000 total) in a taxable account.

This fund serves as both my emergency fund and a source of $7000 income each year in addition to Social Security and a pension to fund my retirement (age 74).

My portfolio is 70% Bond (this fund in a taxable account + Total Bond Market in a non taxable account) / 30% Stock (Total Stock Market in this same taxable account as VBSTX).

It seems reasonable to tax loss harvest. What should I do?

(1) Temporarily park the funds in the Prime Money Market and then exchange back?

(2) Temporarily exchange the funds for the Short Term Bond Fund Index VBISX and then exchange back? Would this pass the "Wash Test?

(3) Given the performance of VBSTX, permanently park the funds in the Prime Money Market.

(4) Do something else?

Thank you.
I don't believe their is a frequent trading restriction on short term bond funds except on inflation protected securities. Did you mean $700. Income from this fund? $7000. not possible.

UpperNwGuy
Posts: 1122
Joined: Sun Oct 08, 2017 7:16 pm

Re: TLH Vanguard Short Term Investment Grade Bond Fund

Post by UpperNwGuy » Thu Nov 08, 2018 10:23 am

Or you could leave your funds where they are and watch that loss disappear over the course of time as the NAV recovers.

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