Hello coachd50,It all boils down to “why”. Why have you held a position in intermediate bonds in the past?The inversion of the yield curve has caused me a bit of investor paralysis. I’ve held an intermediate bond position for my fixed income portfolio portion for over 40 years. Most recently I traded out of a position in VTEB to realize tax loss harvesting, and didn’t elect to lateral to MUB or similar, but have been parked in a Schwab municipal money market. Currently paying 3.79% AMT tax free. At the end of the 30 day wash period, I was going to return to VTEB, but maybe not. Maybe DCA back in over 6 months? Inverted yield curves can last a long time. Perhaps a very long time. I’m very happy at 3.79% with a NAV forever 1. How stupid am I?
Yes, right now your Money market fund is giving you something you want- just keep in mind the mechanics of the markets. When whatever causes the money market fund ‘s dividends to drop happens- it will likely cause the intermediate bond funds to rise in NAV (and drop in dividends). So if you waited to your money market fund drop, you would almost assuredly be paying more for lower monthly dividend bond payments.
Yep, and that "whatever" is interest rates dropping. But the OP needn't worry too much (unless they are not paying any attention to their portfolio)...it only takes minutes to switch funds plus a day or two at the longest to settle.
Statistics: Posted by rossington — Wed Jul 03, 2024 1:11 am — Replies 3 — Views 845