harley
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I'm quoting LOL! from a different thread to make a point.
I see this advice all the time. I don't understand bonds all that well, although I've read about them somewhat. I think I have some sort of mental block regarding them.
I'm retired, and I've been living off cash for the past few years. I'm trying to create a cash flow for moving forward. I'm 52 and have a large amount of my net worth in after tax investments, so it will be a while before I start withdrawing from my IRAs.
That being said, why shouldn't I keep bonds in my taxable accounts, to help with the cash flow situation? I'm in the process of moving my investments into Vanguard funds/ETFs, and the dividends from those and my REIT will create most of my needed cash. But if I'm going to be 55% equities/REIT, 40% bonds, 5% cash, part of my taxable accounts at least will have to be bonds. Given that, I can understand keeping my cap gains in after tax vehicles, but since I'll be in the same (relative) tax bracket in 10 years or so, what does it matter where I keep the bonds?
And if anyone has any suggestions about bond reading material that is easy to understand, I would appreciate it. Thanks.
You should not hold your BND, VNQ, RWX and actively managed funds in a taxable account. Put them in an IRA instead.
I see this advice all the time. I don't understand bonds all that well, although I've read about them somewhat. I think I have some sort of mental block regarding them.
I'm retired, and I've been living off cash for the past few years. I'm trying to create a cash flow for moving forward. I'm 52 and have a large amount of my net worth in after tax investments, so it will be a while before I start withdrawing from my IRAs.
That being said, why shouldn't I keep bonds in my taxable accounts, to help with the cash flow situation? I'm in the process of moving my investments into Vanguard funds/ETFs, and the dividends from those and my REIT will create most of my needed cash. But if I'm going to be 55% equities/REIT, 40% bonds, 5% cash, part of my taxable accounts at least will have to be bonds. Given that, I can understand keeping my cap gains in after tax vehicles, but since I'll be in the same (relative) tax bracket in 10 years or so, what does it matter where I keep the bonds?
And if anyone has any suggestions about bond reading material that is easy to understand, I would appreciate it. Thanks.