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PRPFX and TLT
Posted: Wed Sep 14, 2011 12:44 pm
by AdamA
Is anyone aware of a way to combine PRPFX and TLT similar to using PRPFX and EDV? Maybe 80/20?
More importantly, would there a point to doing this? My thinking is that in a taxable account, TLT would offer a bit more
predicability and might even be more tax efficient?
Re: PRPFX and TLT
Posted: Wed Sep 14, 2011 6:54 pm
by MediumTex
I would stick with 90/10 even with TLT.
It's not scientific. We just want to stay in the same ballpark with PRPFX as we are in with the HB PP.
Re: PRPFX and TLT
Posted: Wed Sep 14, 2011 7:00 pm
by AdamA
Do you think TLT is the better option if you have to put the money in a taxable account?
Re: PRPFX and TLT
Posted: Thu Sep 15, 2011 7:11 am
by steve
I am just sharing my own personal experience with EDV this year so far.
When I did a tax loss harvest the begining of Feb this year I sold some TLT in taxable account and I bought 50/50 split of EDV and VGLTwith proceeds. At the present time the combined edv/vglt is 6% higher then If I just keep TLT. EDV is up 47.16% and VGLT is up 23.86%. Just from a quick look I think the dividend total will be close. The 50/50 split now looks more like EDV 54.24/45.75 VGLT.
Now if EDV has some type of large distribution it may even me back to the 50/50 split (sort of like an automatic rebalance) or when I do rebalance I can even it out. If I have to pay tax on something that is profitable it isn't the worst thing that can happen in the world of investing.