Hi @wxman123,
AKREX, very concerned about valuation, price to sales of top holdings such as V and MA. While the fund obviously has done great, I'm not convinced that it will remain so when the Fed Reserve take the foot of the gas
Fund doesn't do much selling and I'm looking for a fund that might be more apt to buy/sell, be more nimble going forward especially if I am looking for an active fund mgmt and not "passive" indexing. Saw an interview and they asked Akre about valuations and when he would sell and basically he said never, stock would grow into its valuation, well maybe yes but maybe no.
We'll see what happens.
Good Luck / Best Regards,
Baseball_Fan

I really appreciate @VintageFreak’s help in my understanding how selling puts to raise income works. Hopefully, my comprehension as expressed above is mostly accurate. While it had little to do with his original purpose in posting, it exemplifies what the board is about in terms of investor education. I’m “tacking-on” here some additional thoughts having had the benefit of a few hours to digest how selling puts works. A couple broad observations:
- Selling puts for income represents the extent to which some of us are going to produce income or perceived “low risk” return in an era where cash yields virtually nothing and interest sensitive instruments (ie: bonds) look risky. Personally, I like to scour the charts looking for badly beaten up funds and place small short term “wagers” on some awaiting a bounce. Admittedly, that’s fraught with risk. Others are buying / trading lower credit instruments (the junkiest junk).
- The biggest risk with puts I’d think would be if TSLA (or other security) fell completely through the floor, dropping to near zero before the puts expired. In that case the holder would still be obligated to purchase the security for the predetermined price (in the example above $200). While that risk would appear very small, what might trigger such a worst-case outcome? (1) Heavy debt load & inability to raise more cash / bankruptcy, (2) Consumer law suits, (3) Previously unknown issues with the technology, (4) Regulatory issues, SEC violations / fines and or criminal activity.

CDs (3.0 to 3.55% APY rolling off in ~3.5 years), 77%
on line savings, 5%, currently paying 0.60% APY
Dominion DERI account, 6%, currently paying 1.75% APY
IQDAX, Infinity Q, 5%
FPFIX, FPA Flexible Income Fund, 2%
ROSOX, Rondure Overseas Fund, 2%
AKREX, AKRE Focus Fund, 1%, phasing out aggressively
TGUNX, TCW Premier New America, 1%, phasing in during down days, will take this up to ~5% of portfolio
AWK, American Water, 1%
Obviously very conservative, current portfolio supports lifestyle/expenses, me thinks current market is a complete farce due to gov't intervention/manipulation and that within 5 years we will all be "investing" in sports gambling thru our phones to fund our retirement
Do own two homes clear, likely going to sell home in high tax, mis managed Illinois within a year or two, maybe much sooner and move to other home in the mountains of NC
Younger wife still working, good salary, me...not sure if I'm retired or not, not working, not looking but kind of miss the corporate battles but then during a nice day hiking or on the beach don't miss it at all, I'm in my late 50s
Posting for entertainment purposes only.
Good Luck, Good Health to all, go Vote as you see fit,
Baseball_Fan

Just wondering on your rationale for selling AKREX? By my reckoning it may be the fund of the decade when taking risk into account.

Not personally into high yield. Stumbled across this article. Might interest some folks. My quick read of the charts says HY has returned little to investors this year, but that it’s done quite well over longer 3 / 5 year time frames. Might be fairly priced now. Not yet dirt cheap. (But what is?)
https://finance.yahoo.com/news/u-junk-bonds-set-329-204710508.html

- TSLA closed at $427 Friday.
- Linked chart (thanks to VF) is set to TSLA’s Friday close. / OK
- Scan down chart (left side) to TSLA futures @$200 / share and note the accompanying put price of $2.25 per share on specified date (11/20/20). / OK
- Sell 100 TSLA puts dated 11/20 for $2.25 each. You pocket $225. However, you are obligated to buy TSLA if the price is below $200 on 11/20.
- Secure your (potential) purchase of TSLA shares with $20,000.
- If TSLA is priced below $200 on 11/20, you are obligated to buy it at that price. Since you placed 100 puts, you will be required to buy 100 shares at $200.
- If TSLA is above $200 on 11/20, you’ve made $2.25 per put ($225 on 100 puts).
- The $225 you’ve pocketed is your “commission” (for lack of a better word) for helping facilitate the smooth functioning of the futures markets and for accepting what appears to be a small amount of risk.
Thanks VF - I’m beginning to understand. Glad it’s working for you.

VF -Someday when you have time maybe you could compose for us a “Selling Puts for Dummies“ guide. It’s something my feeble brain has yet to fully grasp. Possibly others would also like to understand the process better. While I’m not interested in doing such, some of my fund managers employ it - thus the interest in better comprehending.
Take care.

Honestly so many others can do so much better job of explaining than I. Youtube has several good videos. When you start getting a little sophisticated - I (ahem) am getting there - then look at TastyTrade. I'm taking my time, don't have to do anything exotic.
Here's an example.
Would you mind owning TSLA at $200 in the next 56 days. Your answer has to be YES.
Look at how much put for TSLA is selling expiring 11/20 here...
https://www.barchart.com/stocks/quotes/TSLA/options?expiration=2020-11-20-m&moneyness=allRows
Answer = $2.25.
1 put controls 100 shares. Mortals need to cash secure their puts. 100 shares of TSLA at 200 cost $20K.
On 11/20 if price if TSLA is below $200 you will receive 100 shares of TSLA. THIS is your risk, BUT you already accepted it. If it is above $200 you earned $2.25 x 100 = $225. $225 on $20K. A recent of over 1% in 56 days. 6% annualized.
This works for me because I invest very conservatively. IT is not for every one.

”I'm paranoid of me or TRP messing up closing account and giving me a check which I have to then send to broker.“

That’s understandable. I hate doing custodian to custodian transfers, fearing the one sending out the proceeds will misunderstand my instructions, close account and send out 100% to the recipient. So I usually scribble in the margin “Partial Transfer Only”. So far, after a dozen or so such transfers over the years - no problem. (Well ... err ... one once with Strong not sending the money)
Edit Should note that Price has on occasdion allowed me to transfer money in from other custodians online. But there have been occasions when, for whatever reason, it didn’t go through. So, generally I submit the work on paper.
VF -Someday when you have time maybe you could compose for us a “Selling Puts for Dummies“ guide. It’s something my feeble brain has yet to fully grasp. Possibly others would also like to understand the process better. While I’m not interested in doing such, some of my fund managers employ it - thus the interest in better comprehending.
Take care.

A pretty obvious academic exercise, but basically a straw man.

The key, here, is the ... sentence: once a portfolio is going to be rebalanced every year, the impact of decision rules is made null and void and the buckets are essentially just an asset allocation mirage, because the total amount of withdrawals is always the same (regardless of which asset classes it’s taken from) and the final allocation is always the same (due to the rebalancing).

The latter part of the sentence provides the explanation of why the two approaches come out the same. Hence my characterization of the substantially equal results as pretty obvious. However, the assumption that the portfolio be rebalanced annually, even if stocks and bonds are both down, is not realistic. Hence I take this theoretical equality to be a straw man.
If the cash bucket is to be replenished annually come hell or high water, what's the point in keeping more than a year's worth of expenditures in that bucket? In the real world, that cash bucket serves as a buffer for extended periods when both stocks and bonds are down. As Christine Benz describes the cash replenishing process:

In a good year for stocks, like 2013 or 2014, the retiree will be selling highly appreciated parts of the equity portfolio. If bonds have gained at the expense of stocks, the retiree would be lightening up on bonds. And if neither stocks nor bonds had appreciated, the retiree might allow bucket 1 to be drawn down, or even move into "next-line reserves" in the bond portfolio.

https://www.morningstar.com/articles/754593/retirement-bucket-basics-a-qa-with-morningstars-ch
You might have better luck with Moshe Milovsky's work, since he looks specifically at using the cash bucket without replenishing in down years. In a simplistic example, he shows that in the worst case (when the cash bucket is too small) the bucket approach can leave one with less. Fair enough, but is that an argument against the bucket approach or for allocating an adequate cash bucket?
He goes on to observe that in his example "there is a 60 percent chance [that a bucket approach] will be better off and a 40 percent chance [that a single balanced fund] will be better off. Indeed, the odds might favor [the bucket approach], but this is not a guaranteed way to avoid a poor sequence of returns."
https://www.thinkadvisor.com/2007/06/01/lesson-5-spending-buckets-and-financial-placebos/
P.S. Kitces describes the superiority of the bucket approach:

[A]s advocates of the strategy often point out, the bucket approach is arguably superior from the perspective of client psychology; it fits far better into our mental accounting heuristics, and makes the portfolio easier for clients to understand. Furthermore, clients may have an easier time staying the course through market volatility when they can clearly see where their cash flows will come from in the coming years, and that they truly have a decade or more to allow for any declines in the equity bucket to recover.
...
[E]ven if a bucket strategy merely produces the exact same asset allocation and portfolio construction, but does so in a manner that makes it easier for clients to stick with and implement the strategy, it is arguably a superior one.

So I wanted a as painless a way to transfer my IRA account at TRP to a broker. Based on my experience last few months I have reached decision to manage some of my tax deferred money selling options instead of investing in mutual funds.
I searched on MFO, and landed on this thread which was helpful
https://mutualfundobserver.com/discuss/discussion/54913/acat-transfers-of-mutual-funds
However, it still left me little confused.
So I'm fine it takes longer time, but can I initiate ACAT transfer from my broker and accomplish everything online? I mean will TRP cut a check and send it to my broker - safer IMO than me asking them to send a check made payable to me FBO the broker and they messing it up.
Would really appreciate if someone who might have done the same share their experience. Right now my money in my TRP IRA is sitting in their money market fund.
Thanks in advance.

Thank you for sharing this info.
Since it's inception VFIAX(SP500) has e better risk/reward and why SP500 Sharpe+Sortino is better. See PV(link)
VFIAX beats MOAT for YTD and one year. See YTD (chart)

(link)

Lance Roberts, Chief Investment Strategist, RIA Advisors
After having been in the investing world for more than 25 years from private banking and investment management to private and venture capital; Lance has pretty much “been there and done that” at one point or another. His common-sense approach, clear explanations and “real world” experience has appealed to audiences for over a decade. Lance is also the Chief Editor of the Real Investment Report, a weekly subscriber-based newsletter that is distributed nationwide. The newsletter covers economic, political and market topics as they relate to your money and life. He also writes the Real Investment Daily blog, which is read by thousands nationwide from individuals to professionals, and his opinions are frequently sought after by major media sources. Lance’s investment strategies and knowledge have been featured on CNBC, Fox Business News, Business News Network and Fox News. He has been quoted by a litany of publications from the Wall Street Journal, Reuters, Bloomberg, The New York Times, The Washington Post all the way to TheStreet.com. His writings and research have also been featured on several of the nation’s biggest financial blog sites such as the Pragmatic Capitalist, Credit Write-downs, The Daily Beast, Zero Hedge and Seeking Alpha.
Over the last couple of weeks, we have been discussing the ongoing market correction. As we stated last week:
“As shown in the chart below, we had suggested a correction back to previous market highs was likely but could extend to the 50-dma. So far, the correction has played out much as we anticipated.”
However, we also said:​​ “However, while we expect a rally next week, due to the short-term oversold condition of the market, there is a downside risk to the 200-dma, which is another 5% lower from current levels. Such would entail a near 14% decline from the peak, which is well within the historical norms of corrections during any given year.”
On Friday, due to the “quad-witching options expiration” (when all options contracts for the current strike month expire and rollover), the market gave up support at the 50-dma, as shown below.
The good news, if you want to call it that, is the market did hold a previous level of minor support and remains oversold short-term.
As such, the break of the 50-dma must recover early next week, or it will put the 200-dma into focus. That is currently about 7% lower than where we closed on Friday.

Thanks for the info folk!
We are 60 & retired. I have always been cautious and currently have age in bonds/cash. As noted above, the cash/bonds are primarily in a stable value fund, cash and FADMX.
I have felt that being cautious in 2001 and 2009 allowed me to sleep well and rebalance. While I don’t want to see a market turndown, I would welcome values that would encourage me to shift towards 50/50. I hold some managed funds that have performed well but when considering new funds I lean towards index funds having been burned by managers such as Leuthold and Rob Arrnot.
So far our spending has been in line with the various models. Part of me would like to sit down with one of the books by Jim Otar, Wade Pauf or Michael McClung and fine-tune a plan but a larger part of me doesn’t want to bother.
Rbrt

That alleged TR advantage is premised on the basis of never touching your balance and allowing it to just grow and grow and grow. Tell me, who does that? Who just lets it sit there forever and ever? This constant battle between dividend growth/income focused investors and TR investors is a total waste of time and nonsense. Who cares as long as the investor is getting what they want.
Sure I can sell shares but there are no guaranties that I will always be selling them at an advantage. Similarly theres no guarantee that a dividend is safe and secure forever but it's more likely. And no where is it written that all income investors go after higher yields all the time.

I stated in my post the following: "Lastly, even retirees don't have to invest for higher yield, they can always sell something. Most retirees invest in stock+bonds funds and get monthly distributions.
If they need more: when stocks go up they can use their stocks for expenses, when bonds are up use their bonds."
TR doesn't mean you never sell. You do sell when you need some money and I explained how to do that. And no, you don't sell your stock funds at the bottom, this is why retirees have bond funds.
Can you show where is the fault with this approach?
BTW, I look at best risk/reward funds and after I like that I may go for higher yield but in no circumstances I would invest based on higher yield first. QQQ made a lot more money than higher yield (income or value) stock funds but also did better on March meltdown. The investing world changed, information is known globally in minutes, high tech companies improve processes, they get their next customers quicker and cheaper. It's a lot harder to find unknown great companies and if you find that their price goes up pretty quickly.
=========
The bucket system: why the average Joe should use this system? Why anyone wants to make it more complicated than necessary?
Let's take a simple example: Joe the retiree knows his goals and came to a conclusion that 50/50 is the right mixed, he bought 4-6 funds and from that points, when stocks go up he uses stocks for expenses, when bonds are up he uses bonds. This will also take care of his asset allocation but if markets are extreme he decides to rebalance if his portfolio is off by 5%. Pretty easy concept to follow and implement.
The bucket system takes the above simple approach and complicates it without any evidence it's better for performance or volatility.
Others own 15-20 funds instead of just several. Again, why?
Just because you can handle it doesn't mean you have to :-)

Geez - Looks like I stumbled into some extra work.
74, single, retired 22 years. Pension from State of MI in the upper 40s with a 3% annual increase on the original “base” amount. So the 3% annual increase doesn’t compound. Still it’s helpful. That’s an option I paid for in the working years. Social Security adds a bit more but only a fraction of what the pension garners. Had a 403B in workplace dating to the mid 70s, and converted it to IRA after retirement. Own a home with small mortgage and 10 years remaining. Plan to pay it off sooner so that the current payment will convert to a annuity-like income stream. No hurry, as the mortgage rate is well below what my funds generate.
Most years I draw 5-7% from investments to supplement the above mentioned income stream. And roughly every 5-6 years I’ll pull a larger amount out for major expenses like a new vehicle. The original nest-egg has more than doubled over those years (in nominal terms only) despite taking annual distributions. About 70% now in a Roth from 3 post-retirement conversions. I’m slightly more aggressive in the Roth. Some funds like TMSRX are held in both the Roth and Traditional IRA. The Roth is spread directly among 4 fund houses. The Traditional is 100% at TRP and really simplifies the annual RMD calculations.
I’ve always believed in diversifying not just among equity funds, but also into different asset classes, into “oddball” funds (like TMSRX, PRPFX) that might hold up better during an equity rout, and among three or more different fund companies (currently 4). My best guess is my holdings won’t suffer more than a 20% drop in any given year, nor lose more than one-third of their value over a multi-year stretch. That’s merely a guess. I’m comfortable with that degree of potential loss. Being invested directly with several houses is a throwback to earlier years when that was more common. I feel it exerts discipline on me not to “shop around” excessively among a near infinite number of fund offerings out there today.
I don’t run the M* analysis which breaks down total holdings into various assets as @Crash appears to have done. I have my own assessment of what each fund is likely to contribute (or take away from) the portfolio. So each fund is a separate entity with risk / benefit perimeters based on nearly 50 years investing in funds. I’ve always tried to have during retirement an “auto-pilot” portfolio that needs little tinkering. The 5 sleeves are: Balanced Funds (25%), Diversified Income (25%), Alternative Investments (25%), Real Assets (10%) Cash & Speculative (15%). Currently that last one is 2/3 in cash equivalents and 1/3 in 3 speculative equity fund holdings. So net-net cash is at 10%.
I don’t know if this helps anyone else. More important than what I or another here does is the importance of having some kind of plan. Once you have a plan continue to monitor performance and refine it as necessary. Should go without saying that I’ve gradually nudged the plan into a more conservative position with increasing years. My idea of a “good day” is beating the return on TRRIX, a 40/60 balanced fund I’ve long tracked, but don’t own. So If TRRIX falls 5% one day and my holdings only fall 4%, it’s been a successful day. I strongly recommend finding some fund you admire and which meets your risk profile. Compare your returns to that, not to what some anonymous poster on a board says he earned. You don’t know if it’s true or not. And you don’t know or fully appreciate the degree of risk involved in producing that return.
Best investing wishes to everyone.

Let's grant for the moment that a comparison between one year performance and eight year performance is unbiased. By this premise, when investing for the long term (say, at least four years), one need only look at a fund's most recent performance. There's no point in looking at long term performance since the implicit premise is that there's no historical bias from one year to the next.
(Never mind that the S&P 500 lost nearly 1%/year on average throughout the 2000s; we need only look at the 26% return for 2009.)
So let's use Dessauer's unbiased approach of gauging performance by looking at recent figures. But to really be unbiased, we should use the most recent figures, not stale ones from 2019. Sure those figures were most recent US Census annual data, but there's monthly data available from other government agencies.
Here's a page that uses monthly data from the US Bureau of Economic Analysis. This page finds that median household income dropped 1.5% from February through July, 2020.
https://finance.townhall.com/columnists/politicalcalculations/2020/09/01/draft-n2575434
The site links to a more detailed page. Like the report you cited, it too looks at Y/Y figures. It just uses more recent data. Voters need current factual information to guide them when they vote.
https://politicalcalculations.blogspot.com/2020/09/median-household-income-in-july-2020.html#.X24nfaL7xaS

The year-over-year rate of change for median household income confirms the sharp deceleration in this measure in both nominal and inflation-adjusted terms. Both measures are falling at the fastest pace observed to date in the 21st century.

https://www.sec.gov/Archives/edgar/data/822977/000119312520248949/d90165d497.htm
497 1 d90165d497.htm GOLDMAN SACHS TRUST
GOLDMAN SACHS TRUST
Goldman Sachs International Equity Insights Funds
Class A, Class C, Institutional, Investor, Class P and Class R6 Shares of the
Goldman Sachs International Small Cap Insights Fund (the “Fund”)
Supplement dated September 18, 2020 to the
Prospectuses, Summary Prospectuses and Statement of Additional Information (“SAI”),
each dated February 28, 2020, as supplemented to date
Effective October 19, 2020, the Fund will reopen for investment by new investors for such period as Goldman Sachs Trust and Goldman Sachs & Co. LLC deems appropriate based on various considerations, including the Fund’s capacity. Exchanges into the Fund from other Goldman Sachs Funds will also be permitted. Goldman Sachs Trust and Goldman Sachs & Co. LLC reserve the right to close the Fund without prior notice.
This Supplement should be retained with your Prospectuses, Summary Prospectuses and SAI for future reference.
INTINS3OPSSTK 09-20

CDs (3.0 to 3.55% APY rolling off in ~3.5 years), 77%
on line savings, 5%, currently paying 0.60% APY
Dominion DERI account, 6%, currently paying 1.75% APY
IQDAX, Infinity Q, 5%
FPFIX, FPA Flexible Income Fund, 2%
ROSOX, Rondure Overseas Fund, 2%
AKREX, AKRE Focus Fund, 1%, phasing out aggressively
TGUNX, TCW Premier New America, 1%, phasing in during down days, will take this up to ~5% of portfolio
AWK, American Water, 1%
Obviously very conservative, current portfolio supports lifestyle/expenses, me thinks current market is a complete farce due to gov't intervention/manipulation and that within 5 years we will all be "investing" in sports gambling thru our phones to fund our retirement
Do own two homes clear, likely going to sell home in high tax, mis managed Illinois within a year or two, maybe much sooner and move to other home in the mountains of NC
Younger wife still working, good salary, me...not sure if I'm retired or not, not working, not looking but kind of miss the corporate battles but then during a nice day hiking or on the beach don't miss it at all, I'm in my late 50s
Posting for entertainment purposes only.
Good Luck, Good Health to all, go Vote as you see fit,
Baseball_Fan

John Dessauer’s market review and update as of Wednesday September 23, 2020
The political bias is frightening. Voters need factual information to guide them when they vote.
The median household income for Americans grew at a 6.8% rate last year, the largest annual increase on record. In dollar terms, U.S. household income rose $4,379 last year to $68,709. This is nearly 50% more that during the eight years of Barack Obama’s Presidency. Obviously, that is what so many in the media don’t want you to know. Whether you like President Trump or not, his policies work, meaning benefit almost all Americans. Minorities did especially well. Median household incomes increased 7.1% for Hispanics, 7.9% for Blacks and 10.6% for Asians. That compares with a 5.7% increase for whites.
Income inequality, a big political issue, also declined in 2019. The bottom quintile’s share of income grew 2.4%, with many lower earners rising into the middle class.
“These income gains weren’t magical. Policy changes mattered. The Obama Administration’s obsession with income redistribution and regulation retarded business investment and economic growth.
https://johndessauerinvestments.com/weekly-hotline

https://www.sec.gov/Archives/edgar/data/788606/000168386320013403/f6980d1.htm
497 1 f6980d1.htm VANGUARD PENNSYLVANIA MUNICIPAL MONEY MARKET 497
Vanguard Pennsylvania Municipal Money Market Fund
Supplement to the Prospectus and Summary Prospectus Dated March 27, 2020
Important Changes to Vanguard Pennsylvania Municipal Money Market Fund
On September 24, 2020, the board of trustees for Vanguard Pennsylvania Municipal Money Market Fund (the Fund) approved a proposal to liquidate and dissolve the Fund on or about November 24, 2020 (the liquidation date). In anticipation of the liquidation and dissolution, the Fund will be closed to new investors at the start of business on September 25, 2020, and will be closed to new investments at the start of business on November 5, 2020.
On the liquidation date, the Fund will redeem all of its outstanding shares at the net asset value of such shares. On this same date, all outstanding shares of the Fund will be canceled and the Fund will cease operations as a mutual fund.
In order to provide for an orderly liquidation and satisfy redemptions in anticipation of the liquidation, the Fund may deviate from its investment objective and strategies as the liquidation date approaches.
Prior to the liquidation date, the Fund will declare and pay its shareholders of record one or more dividends, other distributions of its investment company taxable income, if any, and/or net realized capital gains.
The liquidation and dissolution is not expected to result in income tax liability for the Fund. The Fund may pay more than one liquidating distribution in more than one installment. Distribution of liquidation proceeds, if any, to Fund shareholders may result in a taxable event for shareholders, depending on their individual circumstances. Shareholders should consult their own tax advisors about any tax liability resulting from the receipt of liquidation proceeds.
© 2020 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.

https://www.sec.gov/Archives/edgar/data/821404/000168386320013400/f6985d1.htm
497 1 f6985d1.htm NEW JERSEY MUNICIPAL MONEY MARKET FUND
Vanguard New Jersey Municipal Money Market Fund
Supplement to the Prospectus and Summary Prospectus Dated March 27, 2020
Important Changes to Vanguard New Jersey Municipal Money Market Fund
On September 24, 2020, the board of trustees for Vanguard New Jersey Municipal Money Market Fund (the Fund) approved a proposal to liquidate and dissolve the Fund on or about November 24, 2020 (the liquidation date). In anticipation of the liquidation and dissolution, the Fund will be closed to new investors at the start of business on September 25, 2020, and will be closed to new investments at the start of business on November 5, 2020.
On the liquidation date, the Fund will redeem all of its outstanding shares at the net asset value of such shares. On this same date, all outstanding shares of the Fund will be canceled and the Fund will cease operations as a mutual fund.
In order to provide for an orderly liquidation and satisfy redemptions in anticipation of the liquidation, the Fund may deviate from its investment objective and strategies as the liquidation date approaches.
Prior to the liquidation date, the Fund will declare and pay its shareholders of record one or more dividends, other distributions of its investment company taxable income, if any, and/or net realized capital gains.
The liquidation and dissolution is not expected to result in income tax liability for the Fund. The Fund may pay more than one liquidating distribution in more than one installment. Distribution of liquidation proceeds, if any, to Fund shareholders may result in a taxable event for shareholders, depending on their individual circumstances. Shareholders should consult their own tax advisors about any tax liability resulting from the receipt of liquidation proceeds.
© 2020 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor. PS 014A 092020
Vanguard Pennsylvania Municipal Money Market Fund
Vanguard New Jersey Municipal Money Market Fund
Supplement to the Statement of Additional Information Dated March 27, 2020
Important Changes to Vanguard Pennsylvania Municipal Money Market Fund and Vanguard New Jersey Municipal Money Market Fund
On September 24, 2020, the board of trustees for each of the Vanguard Pennsylvania Municipal Money Market Fund and the Vanguard New Jersey Municipal Money Market Fund (the Funds) approved a proposal to liquidate and dissolve the Funds on or about November 24, 2020 (the liquidation date). In anticipation of the liquidation and dissolution, the Funds will be closed to new investors at the start of business on September 25, 2020, and will be closed to new investments at the start of business on November 5, 2020.
On the liquidation date, each Fund will redeem all of its outstanding shares at the net asset value of such shares. On this same date, all outstanding shares of each Fund will be canceled and each Fund will cease operations as a mutual fund.
In order to provide for an orderly liquidation and satisfy redemptions in anticipation of the liquidation, each Fund may deviate from its investment objective and strategies as the liquidation date approaches.
Prior to the liquidation date, the Fund will declare and pay its shareholders of record one or more dividends, other distributions of its investment company taxable income, if any, and/or net realized capital gains.
The liquidation and dissolution is not expected to result in income tax liability for either Fund. Each Fund may pay more than one liquidating distribution in more than one installment. Distribution of liquidation proceeds, if any, to Fund shareholders may result in a taxable event for shareholders, depending on their individual circumstances. Shareholders should consult their own tax advisors about any tax liability resulting from the receipt of liquidation proceeds.
© 2020 The Vanguard Group, Inc. All rights reserved.