Author Topic: how to tailor the bonds components of your portfolio  (Read 1196 times)


  • Pencil Stache
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how to tailor the bonds components of your portfolio
« on: December 06, 2015, 02:52:46 PM »
I currently am 5-10 years from FIRE.  Almost all of my money is in a mix of stock funds (VTSAX, VIMAX, VSMAX, VIGAX), a small percentage (maybe 5%) is in bonds (VTBLX).  I am looking to increase my bond component a little bit.  What I am having trouble deciding is if I want to stick with VTBLX, or go into other bond types (munis, junk bonds, etc..).

Can anyone give advice on the thought processes one might go through in order to decide whether this is a good idea?  To start looking into tax-exempt bonds, high yield bonds, or both?

Currently I am in a high tax bracket, so I thought getting a municipal bond fund would be a good idea.  Of course, post-FIRE my income bracket will go down considerably and so I guess if I get this then I should look to sell it early into retirement?

Lastly, has anyone ever looked at NIO (nuveen municipal bond fund)?
It gets a super high yield (~6%) and is tax exempt as a muni; this is contrasted by its high fees (1-1.5% I think).