I know you asked about the percentage of bonds vs stocks, but the 2.23% yield only applies to the bond portion.
24% Fed + 9.3% CA + 3.8% NIIT = 37.1% total tax lag
Tax Equivalent Yield on VTMFX is 2.23% / (1 - 0.371) = 3.55%.
If you had a nominal bond paying 3.55% and subtracted out all the taxes, the after-tax yield is 3.55% x (1 - 0.371) = 2.23%
So you're looking for a nominal bond paying more than 3.55%, which shouldn't be too difficult to find.
Vanguard Tax-Managed Balance usually makes sense at the the 35% or 37% Fed tax bracket; at 24% Fed it's not usually a winner (but it's worth a look given CA tax rates and NIIT on top of that).
24% Fed + 9.3% CA + 3.8% NIIT = 37.1% total tax lag
Tax Equivalent Yield on VTMFX is 2.23% / (1 - 0.371) = 3.55%.
If you had a nominal bond paying 3.55% and subtracted out all the taxes, the after-tax yield is 3.55% x (1 - 0.371) = 2.23%
So you're looking for a nominal bond paying more than 3.55%, which shouldn't be too difficult to find.
Vanguard Tax-Managed Balance usually makes sense at the the 35% or 37% Fed tax bracket; at 24% Fed it's not usually a winner (but it's worth a look given CA tax rates and NIIT on top of that).
Statistics: Posted by bonesly — Thu Mar 28, 2024 11:15 pm — Replies 4 — Views 256
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