I use bond funds because then you can calculate at what number of years you break even.
It depends on your marginal tax rate.
In tax deferred it comes out after 59.5. So whatever your tax rate is then including state. In taxable it comes out now excluding state. Really depends on your tax situation.
It shouldn’t matter if it’s a fund or individual bond. The tax treatment is the same.
Sure... I made my numbers with 24%. It's just one of the factors. As it's state rate.
Another thing to consider in modeling is that part of the growth is dividends and part just valuation increase. I had simplified that valuation is 0 in bonds and dividends are 0 in stocks.
Another consideration is that for most of the deaccumulation phase, you are likely to have a big portfolio increasing, so it's probably like an extended horizon for many years. So stocks in TA would work.
The bottom line is that the longest horizon, the better stocks on TA look. Stocks in taxable because they are most tax efficient it's bogus advice. But by all means make your own numbers.
Statistics: Posted by international001 — Wed May 22, 2024 5:49 pm — Replies 46 — Views 4132
