Once you’ve constructed a treasury ladder, and have experienced its simplicity and predictability, it’s hard to go back to the vicissitudes of a bond fund. Maybe that’s why Buffett advocates 10% short term treasuries- not ETFs, not mutual funds. I’m certain that someone will repeat the mantra that you just have to hold onto the bond fund for its duration. I guess i’m just not smart enough to figure that out. As Mr Bogle said “ When there are multiple solutions, choose the simplest one.”Don’t know if I am qualified to give tax advice to someone with a mid 8 figure portfolio. Congrats on your investing and saving accomplishments. I too love the transparency and function of my treasury ladder. For someone with a low seven figure portfolio I hold my 5 year treasury ladder across my entire portfolio mainly in our tax deferred accounts. But I also hold some rungs in my taxable account. When these rungs mature I either keep them in my high paying ( some ) state tax exempt vanguard treasury mm fund to spend, or buy another rung, or rebalance into equities. The interest on my treasury ladder is state tax free. I plan for the interest income in my tax planning. Obviously it’s better to have them in tax deferred accounts but having rungs in a taxable account helps as I plan future retirement spending.
Statistics: Posted by Mayacallie — Mon Jan 13, 2025 5:47 pm — Replies 9 — Views 699