VCAIX vs VTSMX
It's been a long time since I've posted here. I've closed my consulting business in NJ and moved to CA for W*RK. (I'd made that decision pretty much in the confusion of the last days of 08.)
Anyway I couldn't easily find the answer to this question for someone living in CA. Is it wise to replace all or partially VTSMX Total Bond; which I have owned for quite a while now.
With VCAIX Calif. Intermediate Tax Exempt muni?
Return wise it seems like a good idea - VCAIX has a good after tax return. Is replacing all to Tax exempt a good idea?
2nd question I am not sure about relates to the current economoc situation. Is Tax exempt the way to go? Specially Calif has a big economy and budget problem to solve. If local govt start defaulting this could wreck havoc on munis here?
Thanks for your opinion guys.