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20 years out from retirement, currently hold 10% EDV (Vanguard Extended Duration Treasury ETF)
I at the moment maintain 10% EDV and 5% VIPSX (Vanguard TIPS) in my pre-tax IRA. Simply did a rebalance for the 12 months into each after I rolled over my 401k final month.
My plan is to retire in ~2045, at which level do I begin to transition away from EDV into shorter length funds?
Largely curious as a result of the vast majority of the unrealized losses in my portfolio are in my bond fund holdings. I anticipate these finally going away in 10-15 years however was curious as to the precise mechanics of shifting my allocation over to BND or VBLTX (Vanguard Whole Bond Market). Would I simply transitioning over 1% allocation per 12 months beginning 2035 or simply direct new inflows into BND?
For the remainder of my portfolio, it is 80% equities and 5% Gold.
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Re: 20 years out from retirement, currently hold 10% EDV (Vanguard Extended Duration Treasury ETF)
One other approach is to promote EDV straight away, and purchase precise 20 12 months US Treasury notes. Its maturity will shorten yearly.
Previous outcome doesn’t predict future efficiency. Talked about investments could lose cash. Contents are offered “AS IS” and any implied suitability for a specific objective are disclaimed.
Re: 20 years out from retirement, currently hold 10% EDV (Vanguard Extended Duration Treasury ETF)
The tax loss harvesting talked about by market timer is smart. Directing new inflows right into a shorter length fund will shorten your length with out locking in losses that may in all probability break even in some unspecified time in the future.
Re: 20 years out from retirement, currently hold 10% EDV (Vanguard Extended Duration Treasury ETF)
stimulacra wrote: ↑Wed Sep 04, 2024 8:36 pm
Does anybody right here nonetheless maintain EDV (Vanguard Prolonged Period Treasury ETF)? The subject of long run treasuries has been scarce right here since 2021.I at the moment maintain 10% EDV and 5% VIPSX (Vanguard TIPS) in my pre-tax IRA. Simply did a rebalance for the 12 months into each after I rolled over my 401k final month.
My plan is to retire in ~2045, at which level do I begin to transition away from EDV into shorter length funds?
Largely curious as a result of the vast majority of the unrealized losses in my portfolio are in my bond fund holdings. I anticipate these finally going away in 10-15 years however was curious as to the precise mechanics of shifting my allocation over to BND or VBLTX (Vanguard Whole Bond Market). Would I simply transitioning over 1% allocation per 12 months beginning 2035 or simply direct new inflows into BND?
For the remainder of my portfolio, it is 80% equities and 5% Gold.
20% of my portfolio is in GOVZ.
My aim is to match the bond length to my investing horizon to what diploma I can.
I’m 38 and planning to 100. Maybe retiring in 10 years. So planning for 52 years of withdrawals between 10 and 62 years from now, with a midpoint round 26 years. GOVZ is shut sufficient.
after I do retire and haven’t any earnings, I’ll have a TIPS ladder for perhaps 15% of my portfolio and can have 15% nominals, once more matching my length. So that may imply long-term bonds till I’m round 65, at which level I’ll begin decreasing length yearly. If I’m a stay at 75 maybe I’d be primarily intermediate length.
Crom laughs at your 4 Winds
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Re: 20 years out from retirement, currently hold 10% EDV (Vanguard Extended Duration Treasury ETF)
muffins14 wrote: ↑Wed Sep 04, 2024 10:00 pmstimulacra wrote: ↑Wed Sep 04, 2024 8:36 pm
Does anybody right here nonetheless maintain EDV (Vanguard Prolonged Period Treasury ETF)? The subject of long run treasuries has been scarce right here since 2021.I at the moment maintain 10% EDV and 5% VIPSX (Vanguard TIPS) in my pre-tax IRA. Simply did a rebalance for the 12 months into each after I rolled over my 401k final month.
My plan is to retire in ~2045, at which level do I begin to transition away from EDV into shorter length funds?
Largely curious as a result of the vast majority of the unrealized losses in my portfolio are in my bond fund holdings. I anticipate these finally going away in 10-15 years however was curious as to the precise mechanics of shifting my allocation over to BND or VBLTX (Vanguard Whole Bond Market). Would I simply transitioning over 1% allocation per 12 months beginning 2035 or simply direct new inflows into BND?
For the remainder of my portfolio, it is 80% equities and 5% Gold.
20% of my portfolio is in GOVZ.
My aim is to match the bond length to my investing horizon to what diploma I can.
I’m 38 and planning to 100. Maybe retiring in 10 years. So planning for 52 years of withdrawals between 10 and 62 years from now, with a midpoint round 26 years. GOVZ is shut sufficient.
after I do retire and haven’t any earnings, I’ll have a TIPS ladder for perhaps 15% of my portfolio and can have 15% nominals, once more matching my length. So that may imply long-term bonds till I’m round 65, at which level I’ll begin decreasing length yearly. If I’m a stay at 75 maybe I’d be primarily intermediate length.
This +1000
Do not be discurouaged by the unrealized losses of your bond fund or future rises in rates of interest. It signifies that the price of funding your future liabilities has fallen as properly (doubtless by a a lot larger quantity that your current losses). The truth is, if one has plans to legal responsibility match sooner or later and they’re nonetheless within the accumulation part, they might LOVE for rates of interest to proceed to rise (and the PV worth of their bond holdings to fall) till the day they retire.
I would drop your TIPS fund altogether and substitute it with extra EDV or LTPZ (PIMCO 15+ 12 months US TIPS Index) which has a length of 15 years. That is nonetheless doubtless too quick for you and the expense ratio is a bit of greater than I would like, however it’s the one moderately low-cost long-term TIPS fund on the market. 5% Gold is unlikely to make a lot a distinction in your portfolio both, so I would take into account changing that with both extra equities or bonds.
Three-Fund Portfolio: VT + two bond funds (matching length to funding horizon)
