Should I get bond funds in my Etrade taxable?

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Topic Author
dmash
Posts: 10
Joined: Sun Mar 28, 2021 10:44 pm

Should I get bond funds in my Etrade taxable?

Post by dmash »

My second post, still learning. Quick recap,
Tax Filing Status: Married Filing Jointly
Tax Rate: 24% Federal, 9.3% State
State of Residence: CA
Age: 41

After the advises I got from my first post, I'm close to reaching my desired AA of 70% stocks / 30% bonds following the 3-fund portfolio strategy.

My question now is, how do I allocate my periodic investing in my Etrade taxable account?
I've read that Bond is generally not advisable to put in a taxable account. Should I just buy more VTSAX & VTIAX, and convert my tax-sheltered account into more VBTLX when I do my periodic rebalancing?

Etrade does not carry many Vanguard tax-exempt funds that are mentioned in this forum, such as VWIUX, VCADX. Any suggestion on other Bond funds, or how I can search for one?
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David Jay
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Location: Michigan

Re: Should I get bond funds in my Etrade taxable?

Post by David Jay »

dmash wrote: Wed Apr 07, 2021 6:38 pmShould I just buy more VTSAX & VTIAX, and convert my tax-sheltered account into more VBTLX when I do my periodic rebalancing?
Yes, this is exactly what you should do. Hold bonds in tax-advantaged space and hold only stocks in taxable.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius
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Duckie
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Re: Should I get bond funds in my Etrade taxable?

Post by Duckie »

dmash wrote: Wed Apr 07, 2021 6:38 pm Should I just buy more VTSAX & VTIAX, and convert my tax-sheltered account into more VBTLX when I do my periodic rebalancing?
Yes.
Etrade does not carry many Vanguard tax-exempt funds that are mentioned in this forum, such as VWIUX, VCADX. Any suggestion on other Bond funds, or how I can search for one?
For mutual funds go to Mutual Fund Research. Under "Refine your search" check "No Load No Transaction Fee Funds". Under "Fund Category/Fund Group" choose "Municipal Bond" then choose "Muni National Interm" as an example. Under "Expense Ratio" choose "< 0.5%". That will give you a list. On the upper right of the list click on "Gross Expense Ratio" to show the lowest cost fund at the top.

For ETFs go to ETF Research. Under "Fund Category/Fund Group" choose "Municipal Bond" or "Municipal State Bond" then narrow your search. Under "Expense Ratio" choose "Bottom 20%". On the upper right of the list again click on "Gross Expense Ratio" to show the lowest cost ETF at the top.
Topic Author
dmash
Posts: 10
Joined: Sun Mar 28, 2021 10:44 pm

Re: Should I get bond funds in my Etrade taxable?

Post by dmash »

Thank you David Jay and Duckie.
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