Author Topic: Bonds vs Money Market Fund; taxable or non-taxable account  (Read 290 times)

YoungStache

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Bonds vs Money Market Fund; taxable or non-taxable account
« on: September 13, 2019, 08:52:31 PM »
So my portfolio is split between stocks (VTSAX and VTIAX), and money market (VMMFX).

I am considering bonds and am wondering if it would be more beneficial to switch some money market funds to bonds, as bonds would perform well in a recession?

Also, do bonds pay dividends? And which types of accounts (taxable vs non-taxable) do you choose to put stocks, bonds, money market, etc?

I was also looking for FSITX, but could only find FXNAX. Does anyone know about this?


EvenSteven

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Re: Bonds vs Money Market Fund; taxable or non-taxable account
« Reply #1 on: September 14, 2019, 06:12:25 AM »
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as bonds would perform well in a recession?

They might, they might not. There is no rule saying if they will or not. They will probably perform better than stocks in a recession, although so will a money market.

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Also, do bonds pay dividends?

Yes, usually monthly.

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And which types of accounts (taxable vs non-taxable) do you choose to put stocks, bonds, money market, etc?

The dividends or interest payments from bonds are taxed at your regular income tax rate, so it is usually best to keep them in your tax deferred accounts, if you have the space.