In this excerpt from a dwell webcast aired June 10, 2011, Colleen Jaconetti of Vanguard Investment Strategy Group and Chris Alwine of Vanguard Mounted Revenue Team examine bond money and person bond portfolios. Notes: • All investments are subject to danger. Investments in bonds and bond cash are topic to interest price, credit rating, and inflation danger. • Though the earnings from a municipal bond fund is exempt from federal tax, you may owe taxes on any money gains recognized through the fund’s investing or by means of your possess redemption of shares. For some traders, a part of the fund’s earnings could be topic to state and nearby taxes, as nicely as to the federal Option Minimal Tax. • Diversification does not defend against a loss in a declining marketplace or make sure a earnings. • Previous performance is not a assure of foreseeable future results. • The info presented right here is for educational functions only and is not meant to be construed as legal or tax advice. We recommend that you check with a tax or economic advisor about your personal situation. •Vanguard Advertising Corporation, Distributor.

In this excerpt from a dwell webcast aired June 10, 2011, Colleen Jaconetti of Vanguard Investment Technique Group and Chris Alwine of Vanguard Mounted Earnings Team discuss the function of bonds in your portfolio. Notes: • All investments are subject to risk. Investments in bonds and bond funds are matter to interest charge, credit history, and inflation danger. • Despite the fact that the cash flow from a municipal bond fund is exempt from federal tax, you could owe taxes on any richesse gains realized by way of the fund’s buying and selling or by way of your personal redemption of shares. For some investors, a part of the fund’s revenue may possibly be subject matter to state and neighborhood taxes, as effectively as to the federal Substitute Bare minimum Tax. • Diversification does not shield from a reduction in a declining marketplace or make sure a gain. • Past performance is not a guarantee of foreseeable future outcomes. • The data provided the following is for instructional reasons only and is not supposed to be construed as legal or tax assistance. We advise that you seek advice from a tax or fiscal advisor about your person situation. • Vanguard Advertising Corporation, Distributor.
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