I have a significant investment in the Vanguard Total Bond Market Index Fund Admiral Shares(VBTLX). I have always used this fund as the fixed income portion of my asset allocation. The smart people got out when interest rates started going up and the value of this fund started dropping. Not me as I stuck with it in the anticipation that as the fund replaced its lower interest bonds with new bonds at the higher interest rates the fund would recover. This doesn’t seem to be happening. The current NAV is only $9.36 and it has been as high as $11.64.
To compound the issue, I am fully invested and when I take my annual RMD, I am forced to sell at a loss and use some of my RMD to pay taxes. What is left of the RMD, I use to buy additional shares in the same fund in a taxable account.
I am now very nervous of this fund. Should I continue to hold the course and keep this investment anticipating that it will go up eventually or should I sell and absorb the losses and invest the proceeds in CD’s or Money Market.
I would be interested in hearing suggestions.
To compound the issue, I am fully invested and when I take my annual RMD, I am forced to sell at a loss and use some of my RMD to pay taxes. What is left of the RMD, I use to buy additional shares in the same fund in a taxable account.
I am now very nervous of this fund. Should I continue to hold the course and keep this investment anticipating that it will go up eventually or should I sell and absorb the losses and invest the proceeds in CD’s or Money Market.
I would be interested in hearing suggestions.