Thread Tools Search this Thread Display Modes
Prev Previous Post   Next Post Next
Tax loss harvest bond fund(s)?
Old 10-18-2008, 06:53 PM   #1
Recycles dryer sheets
 
Join Date: Sep 2006
Posts: 312
I hold two bond funds in a taxable account.

One is VFSUX, Vanguard's short-term investment grade fund. Note that this is a taxable fund in a taxable account, which I recognize is not optimal.

The other is VCADX, Vanguard's intermediate-term California-only tax-exempt fund. Compared to the above, this has a somewhat longer maturity and hence faces a larger interest-rate risk. I am in a high tax-bracket and, at the moment, VCADX provides a higher return after taxes.

I have low six figures in both. They are both down by roughly equal percentages and both present short term losses for potential harvesting. I'm o.k. with simply holding them, by the way, but if I am to TLH, I should do that soon.

One thought is to move VFSUX to VCADX and leave VCADX alone (at least for the moment). This way I harvest a modest loss in VFSUX and position myself in a more sensible fashion, tax-wise.

If I were to harvest both losses, it's not clear to me what I would put these into at the moment. In line with standard TLH strategies, I'd prefer to move them into something that is similar, e.g. similarly beaten-down and with similarly-good yields (so not VFISX, for example), but with good tax efficiency and with a relatively short duration.

Any comments or ideas?

Thanks!
Grep is offline   Reply With Quote
 


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Harvest Tax Loss by Fund Switch? charlie FIRE and Money 24 10-22-2008 10:58 AM
Vanguard U.S. Value Fund (VUVLX): 14% Loss on 12/17/07 ZMAN Stock Picking (Individual Security Analysis) 16 12-18-2007 10:49 PM
deciding whether to tax-loss harvest figner FIRE and Money 12 08-17-2007 03:34 PM
Bond Fund and Money Market Fund Tax Treatment Question terminator FIRE and Money 4 03-01-2007 07:56 AM
TIPS: Buy Bond or Bond FUND? Pros & Cons please! Jane_Doe FIRE and Money 67 11-20-2006 09:29 PM


Other Social Knowledge forum communities:
Cooking Forum - Sailing Forum - Early Retirement - Airstream Trailer - Aquarium Forum - Royal Forum - Book Forum - Volkswagen Touareg Forum - Jeep Wrangler Forum - Whitewater Kayaking & Rafting Forum - Fiberglass RV Forum - RV Forum - Truck Conversion - U2 Music Forum
Investing Channel
All times are GMT -6. The time now is 11:22 PM.
Powered by vBadvanced CMPS v3.0.1
Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2009, Jelsoft Enterprises Ltd.
Search Engine Friendly URLs by vBSEO 3.3.0