4 ms·
I am generally not interested in taking more risk (I’m not saying your fund has more exposure to risk, I haven’t checked), and for the bonds part of my taxable
by deanmoriarty 4y ago
I am generally not interested in taking more risk (I’m not saying your fund has more exposure to risk, I haven’t checked), and for the bonds part of my taxable portfolio I invest in diversified muni funds, VWIUX specifically. At the current SEC yield of 3.2% and my marginal tax rate of 40.8% this implies a tax-equivalent yield of 5.4%, which is good enough in my books.
- afryer 4y agoTotally, understand what you are saying and I think you will have success. I'm not saying to necessarily take more risk, I am saying to use 2/3 of capital to get access to tax efficient 60/40 exposure. Then I would look to further diversify. Whether it's munis to capture credit risk premiums, managed futures for commodity risk premiums, or taleb-style option trading for tail risk premiums. I think these simple liquid alternative funds could improve risk adjusted returns for boglehead style X-fund investors and not increase complexity or break the investment philosophy. Happy investing.