joecan5785
Confused about dryer sheets
- Joined
- Jan 5, 2016
- Messages
- 7
I am 61 yrs old, retired, no pension, plan on applying for SS at 67. Since I want to increase my bond allocation and I cannot put anymore in my tax deferred accounts, I will have to add bond fund(s) to my taxable account. I live in Mass and was thinking of buying VMATX (Vanguard MA Tax Exempt) The 30 day SEC yield is 2.80% which translates to a tax equivalent yield of 3.353%. My federal rate is 12% and state, 5.1%
I know that muni funds are ususally best for high tax bracket investors but when I compare VMATX to two other funds I was considering, VMATX is higher. The other funds were VSIGX (Vanguard Intermediate Term Treasury) 30 day yield of 2.52% and VTABX (Vanguard Total International Bond Index) 30 day yield of .93% So, wouldn't muni fund make sense in this instance?
With my dividend income at present, I am not paying any federal tax. I do have 3-4 years expenses in CD's, savings account, etc. to ride out market corrections. Looking for advice as to what are my best bond fund options.
Thanks
I know that muni funds are ususally best for high tax bracket investors but when I compare VMATX to two other funds I was considering, VMATX is higher. The other funds were VSIGX (Vanguard Intermediate Term Treasury) 30 day yield of 2.52% and VTABX (Vanguard Total International Bond Index) 30 day yield of .93% So, wouldn't muni fund make sense in this instance?
With my dividend income at present, I am not paying any federal tax. I do have 3-4 years expenses in CD's, savings account, etc. to ride out market corrections. Looking for advice as to what are my best bond fund options.
Thanks