Vanguard Total Bond Market Index Fund BND

ISInvesting Simplified - Professor G17d ago

BEAR$BNDLong-termFundamental

bond yield is ordinary income in taxable, so use tax-advantaged accounts.

BND should be held in tax-advantaged retirement accounts because bond income is taxed at ordinary rates in taxable.

Taxable bond distributions face the worst treatment because bond yield is taxed as ordinary income each year. Traditional IRAs defer tax until withdrawal, and Roth IRAs eliminate taxes entirely for qualified distributions.