Gyroscopic Investing

Here is a view of the Vanguard Brokerage site for buying 30 year T-bonds. I, too, am purchasing treasuries on the secondary market for the first time.
Questions: If you were buying in a taxable account, which would you get? Why? Would it be different for tax-deferred?
Thanks!

Do you pay state income taxes?

Definitely.

Just got done looking at Gumby's TB Buying Tutorial again (http://gyroscopicinvesting.com/forum/ht ... ic.php?t=0). Thanks for this great resource!

Of the bonds shown above, I am thinking that I should buy the 11/15/2042 for a taxable account since it has the second longest interval until maturity and the lowest coupon, translating into more volatility (longer "duration"). And, compared to bonds with higher coupon, any gains would be more from capital gains than from interest (tax rates for me 31% CG vs 43% interest).
Do I have this right?

BearBones wrote: Just got done looking at Gumby's TB Buying Tutorial again (http://gyroscopicinvesting.com/forum/ht ... ic.php?t=0). Thanks for this great resource!

Of the bonds shown above, I am thinking that I should buy the 11/15/2042 for a taxable account since it has the second longest interval until maturity and the lowest coupon, translating into more volatility (longer "duration"). And, compared to bonds with higher coupon, any gains would be more from capital gains than from interest (tax rates for me 31% CG vs 43% interest).
Do I have this right?

I believe that Harry Browne recommended buying the bond with the lowest coupon among the available options for the reasons you outline above.

By the way, I do think Vanguard's Bond Desk is still a bit sloppy. It's easy enough to buy the bonds - as easy as in Fidelity nowadays.
And, this might be less of an issue since you're buying on the secondary market, but
I went to place an order for t-bills when I noticed there was very little money left in the account.

Some bonds that had already been bought at auction (and had settled) were also showing as open orders. I contacted my Vg rep and they took care of it pretty quickly, but meanwhile tens of thousands of dollars were missing until I spoke up.  And the money in this account isn't even mine. It's a family member's account that I manage.

As I've opened accounts at other brokerages (too many, really), I've become less and less impressed with Vanguard's antiquated platform. It takes days for them to clear a trade of one of their own ETFs!

One thing I really like though is their nice graph of investment returns.

MediumTex wrote: I believe that Harry Browne recommended buying the bond with the lowest coupon among the available options for the reasons you outline above.

Thanks. That's what I did. Seems like I remember that either you or Craigr have a large % of your PP in taxable acts. If so, isn't this another reason to buy the lowest coupon?

melveyr wrote: Do you pay state income taxes?

Curious how would that influence your answer, Melveyr?