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Learning, Sharing, and Teaching => Investor Alley => Topic started by: ZiziPB on April 05, 2018, 04:32:27 AM

Title: Sell muni bond fund when FIREd?
Post by: ZiziPB on April 05, 2018, 04:32:27 AM
I have about $50K in a muni bond fund in my taxable account which made sense for me during the accumulation phase given my tax bracket.  But I'm FIRIng this year and will drop down to 15% (or is it 12% now?).  I have about $1500 unrealized loss on that position.  Do I sell?  Is there any argument for keeping muni bonds in the portfolio when in a low tax bracket?
Title: Re: Sell muni bond fund when FIREd?
Post by: pbkmaine on April 05, 2018, 05:08:03 AM
http://www.aaii.com/journal/article/munis-vs-taxables-how-to-determine-the-taxable-equivalent-yield.touch
Title: Re: Sell muni bond fund when FIREd?
Post by: Radagast on April 05, 2018, 01:48:32 PM
VWAHX/VWALX has done well over the past 20 years in a balanced portfolio even before accounting for taxes, so that might be worth keeping around. For more typical short and intermediate term munis I think CDs, Ibonds, or even a total bond index would be better at 15%-->12% tax rate.