{
  "id": 4256840,
  "title": "The Bond ETF Tax Mistake Costing Retirees With a $1 Million 60/40 Portfolio ~$6,600 a Year",
  "url": "https://urgent.news/2026/08/29/the-bond-etf-tax-mistake-costing-retirees-with-a-1-million-60-40",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-29T18:46:26.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/options/articles/bond-etf-tax-mistake-costing-184626050.html"
  },
  "original_language": "en",
  "account": "The tax location of bond ETFs like BND can greatly impact after-tax returns for retirees. A $400,000 bond allocation in BND may result in roughly $6,600 less wealth annually compared to pre-tax return assumptions. Municipal bonds like VTEB offer tax-exempt income, making them a more tax-efficient bond allocation for many retirees outside tax-advantaged accounts. Despite BND's drawbacks during years like 2022, the traditional 60/40 portfolio remains a solid framework for retirement investing, albeit with a focus on the tax implications. BND, commonly held by many retirees, charges a low expense ratio but generates income taxed as ordinary income, adding up to significant tax drag. The difference can be around $6,600 in one year for a $1 million, 60/40 portfolio. Municipal bonds like VTEB provide tax-exempt income, often resulting in a more competitive after-tax yield despite lower headline yields.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}