Search found 5141 matches

by retired@50
Sat Apr 10, 2021 6:46 pm
Forum: Personal Investments
Topic: Effective tax rate 40%+ Sanity check on strategy for tax efficient investing
Replies: 22
Views: 1628

Re: Effective tax rate 40%+ Sanity check on strategy for tax efficient investing

It does seem right to me. I'd suggest keeping the account at Vanguard to have easy access to their excellent CA muni bond funds. Consider VCADX (intermediate term, Admiral with $50,000 initial buy-in or use VCAIX with $3,000 initial investment) Also VCLAX (long term, Admiral with $50,000 initial bu...
by retired@50
Sat Apr 10, 2021 5:20 pm
Forum: Personal Investments
Topic: Simplifying portfolio
Replies: 8
Views: 945

Re: Simplifying portfolio

Besides the small tax implications, is there anything wrong with the above recommendation? Would anyone else want to chime in? It's a challenge to provide solid advice when we can't see the ENTIRE portfolio. I'd share the general ideas in the wiki page Tax Efficient Fund Placement (linked below) wi...
by retired@50
Sat Apr 10, 2021 4:55 pm
Forum: Personal Investments
Topic: transfer betterment to vanguard?
Replies: 4
Views: 369

Re: transfer betterment to vanguard?

Freefun wrote: Sat Apr 10, 2021 4:15 pm I transferred my account. VG made a complete mess of the cost basis and it took months for them to fix it.
This issue often leads people to have their cost basis for all holdings well documented BEFORE making the switch to another broker.

Regards,
by retired@50
Sat Apr 10, 2021 4:53 pm
Forum: Personal Investments
Topic: Portfolio Planning/Review for someone who should’ve asked 3 years ago
Replies: 20
Views: 2472

Re: Portfolio Planning/Review for someone who should’ve asked 3 years ago

I'm a little unclear on whether tax rates/tax efficiency stuff only comes into play after you're past the limit of $300 foreign taxes paid. I'm also unsure of whether my current state (Illinois) even allows foreign tax credit. I thought I saw something saying it might not... I think user ruralavalo...
by retired@50
Sat Apr 10, 2021 4:48 pm
Forum: Personal Investments
Topic: my first Vanguard rebalance
Replies: 5
Views: 431

Re: my first Vanguard rebalance

This will be my first Vanguard rebalance. I'm seeking to sell Total Stock to buy Total Bond. Online, I see Buy / Sell / Exchange -- is this an "Exchange" transaction for me? If I have both STCGs and LTCGs, do I need to know "which stock" to exchange? There's a pop-up that asks m...
by retired@50
Sat Apr 10, 2021 4:37 pm
Forum: Personal Investments
Topic: Effective tax rate 40%+ Sanity check on strategy for tax efficient investing
Replies: 22
Views: 1628

Re: Effective tax rate 40%+ Sanity check on strategy for tax efficient investing

Questions : Our income has really picked up the last two years which has me thinking a lot more about tax efficiency. I’ve followed the conventional wisdom thus far, but other similar threads have had suggestions at this high of a tax level to move to muni bonds in taxable and keep bonds out of the...
by retired@50
Sat Apr 10, 2021 3:21 pm
Forum: Personal Investments
Topic: Is it possible to open and fund a Roth IRA for my kid
Replies: 15
Views: 875

Re: Is it possible to open and fund a Roth IRA for my kid

Thank you. This makes sense. One hypothetical question about earned income though. What about people who have no "income" but live off inheritance or something like that. Can they have a Roth IRA and invest in that? Like trust fund kids we keep hearing about :-D They can "have" ...
by retired@50
Sat Apr 10, 2021 2:31 pm
Forum: Personal Investments
Topic: Is it possible to open and fund a Roth IRA for my kid
Replies: 15
Views: 875

Re: Is it possible to open and fund a Roth IRA for my kid

Hi friends, My kid is 7 years old and obviously not working and has no income. Can I open a Roth IRA account for him now and fund it annually so that he has a headstart with his investments? The investments will be made by me till he has some income when he grows older. Also he will take control of...
by retired@50
Sat Apr 10, 2021 1:30 pm
Forum: Personal Investments
Topic: Analysis paralysis about International in Taxable Account
Replies: 21
Views: 1043

Re: Analysis paralysis about International in Taxable Account

I think you need about $250k in vtiax before yo have to worry about the extra form. Don't let the perfect be the enemy of the good. I think I did see that somewhere as well. I'm definitely nowhere close to that amount. I guess my concern is that I'll keep contributing to international in Taxable an...
by retired@50
Sat Apr 10, 2021 12:33 pm
Forum: Personal Investments
Topic: Roth IRA 5 year rule (over 59.5) question.
Replies: 8
Views: 598

Re: Roth IRA 5 year rule (over 59.5) question.

Adfmacro wrote: Sat Apr 10, 2021 12:18 pm New money which are conversions (this includes back door Roth’s) have separate 5 year rules for EACH conversion.
The above is true if you're under 59.5.

If you're over 59.5, then it's irrelevant.

Regards,
by retired@50
Sat Apr 10, 2021 12:28 pm
Forum: Personal Investments
Topic: Vanguard Solo 401k - Getting the balance of previous employer's plan into Vanguard!
Replies: 3
Views: 254

Re: Vanguard Solo 401k - Getting the balance of previous employer's plan into Vanguard!

SuzBanyan wrote: Sat Apr 10, 2021 11:39 am Good news ! No need to change custodians as Vanguard now allows incoming rollovers. See discussion here: viewtopic.php?t=339757
This link to the aforementioned discussion might work better.

viewtopic.php?t=339757

Regards,
by retired@50
Sat Apr 10, 2021 12:13 pm
Forum: Personal Investments
Topic: Roth IRA 5 year rule (over 59.5) question.
Replies: 8
Views: 598

Re: Roth IRA 5 year rule (over 59.5) question.

Assume you've had a Vanguard Brokerage account for a Roth IRA that you've held for more than 5 years. The account contans Total Stock and Total International Stock funds. You are over 59.5. You find that you need to sell some stock and buy some bonds to balance your portfolio. If you add Total Bond...
by retired@50
Sat Apr 10, 2021 11:31 am
Forum: Personal Investments
Topic: Simplifying portfolio
Replies: 8
Views: 945

Re: Simplifying portfolio

Besides the small tax implications, is there anything wrong with the above recommendation? Would anyone else want to chime in? It's a challenge to provide solid advice when we can't see the ENTIRE portfolio. I'd share the general ideas in the wiki page Tax Efficient Fund Placement (linked below) wi...
by retired@50
Sat Apr 10, 2021 11:01 am
Forum: Personal Investments
Topic: Home sale profits + advisor
Replies: 8
Views: 758

Re: Home sale profits + advisor

Thank you for info and suggestions. Does anyone know if Vanguard advisors tell clients when and from which accounts (IRA, ROTH, SEP, Brokerage) to withdraw retirement funds to maximize growth/minimize taxes? Unfortunately, I don't know the answer to this specific question, but I do suspect that an ...
by retired@50
Sat Apr 10, 2021 10:45 am
Forum: Personal Investments
Topic: Windfall going to invest @ AA but?
Replies: 2
Views: 367

Re: Windfall going to invest @ AA but?

It appears from your holdings listed in the various accounts you're using a "mirroring" type of strategy, where each account holds similar assets. You might benefit from reading the wiki page on tax efficient fund placement. https://www.bogleheads.org/wiki/Tax-efficient_fund_placement The ...
by retired@50
Sat Apr 10, 2021 10:36 am
Forum: Personal Investments
Topic: 401k fees clarification
Replies: 4
Views: 194

Re: 401k fees clarification

Roll it out. Simple as that I would however there are some issues that I need to figure out first. I don't plan to be with my current employer more than 18 months so I don't want to roll it into my current plan and roll it out again (every time there is market volatility risk). Also a 401k roll in ...
by retired@50
Sat Apr 10, 2021 10:28 am
Forum: Personal Investments
Topic: Looking for a well-diversified portfolio of 100% stocks
Replies: 14
Views: 987

Re: Looking for a well-diversified portfolio of 100% stocks

If you already own VTSAX, then adding VTIAX would be the way to go.

You'd simply be adding international stocks to your US stocks. In other words, you'd own the whole world.

Regards,
by retired@50
Sat Apr 10, 2021 10:25 am
Forum: Personal Investments
Topic: Protect savings from imminent inflation?
Replies: 24
Views: 2016

Re: Protect savings from imminent inflation?

Gamma Ray wrote: Fri Apr 09, 2021 9:43 pm ... but inflation is something we have to start taking seriously.
I've been taking inflation seriously since a candy bar went from 10 cents to 15 cents.

Living through the 1970s was instructive. I hold a good chunk of stocks to help combat the loss of purchasing power.

Regards,
by retired@50
Fri Apr 09, 2021 6:57 pm
Forum: Personal Investments
Topic: Millennial's Portfolio Post-home Purchase
Replies: 1
Views: 457

Re: Millennial's Portfolio Post-home Purchase

Looking for some advice on my portfolio's current state... Welcome to the forum. :happy If you translate all the ticker symbols in your post into actual fund names with expense ratios, your response rate will rise dramatically. Use the pencil icon in the upper right of your original post to make th...
by retired@50
Fri Apr 09, 2021 5:52 pm
Forum: Personal Investments
Topic: Home sale profits + advisor
Replies: 8
Views: 758

Re: Home sale profits + advisor

Welcome to the forum. :happy If you want to use an adviser, then consider Vanguard Personal Advisory Services. They only charge .30%, which is much less than 1% and they will likely be more helpful than burying you in paperwork you don't understand. If you want to keep all your cash in FDIC insured ...
by retired@50
Fri Apr 09, 2021 5:42 pm
Forum: Personal Investments
Topic: No Bonds
Replies: 40
Views: 2439

Re: No Bonds

scarson wrote: Fri Apr 09, 2021 2:47 pm Regarding rebalancing I am presuming the good folks at Vanguard will take care in the Life Strategy funds. Am I correct?
Yes. Vanguard will re-balance the LifeStrategy funds as needed. Basically, daily.

Regards,
by retired@50
Fri Apr 09, 2021 12:47 pm
Forum: Personal Investments
Topic: Delay doing Roth conversions in crazy high market?
Replies: 8
Views: 1146

Re: Delay doing Roth conversions in crazy high market?

I was wondering if others are delaying doing Roth conversions because the market is crazy high? I have heard recommendations here along the lines to convert more when markets are low. If that advice is good, then it follows to convert less if the markets are high. Of course hard to say when the mar...
by retired@50
Fri Apr 09, 2021 12:43 pm
Forum: Personal Investments
Topic: No Bonds
Replies: 40
Views: 2439

Re: No Bonds

I thought LifeStrategy funds were supposed to be for life?

Why the change of heart?

Eliminating one type of risk (interest rate risk on bonds) doesn't eliminate risk from your portfolio, it just changes the names and nature of the risk you'll be taking with the proposed portfolio.

Regards,
by retired@50
Fri Apr 09, 2021 10:24 am
Forum: Personal Investments
Topic: Contradictory bond fund composition information by Vanguard on its site
Replies: 2
Views: 264

Re: Contradictory bond fund composition information by Vanguard on its site

Whenever I suspect some bad info, I like to go directly to the source that should be expected to know best...

In this case, Dodge & Cox.

See link: https://www.dodgeandcox.com/pdf/shareho ... _sheet.pdf

Regards,
by retired@50
Fri Apr 09, 2021 10:13 am
Forum: Personal Investments
Topic: new job and new retirement account
Replies: 13
Views: 891

Re: new job and new retirement account

... can you take a look and tell me what three funds are equivalent to BND, VTI, and VXUS? ... I just want a simple low cost portfolio ... If you can dig up the expense ratios for each of the listed funds, that would be helpful. With the limited information provided, I'd suggest these funds are at ...
by retired@50
Fri Apr 09, 2021 10:04 am
Forum: Personal Investments
Topic: How to lose the desire of outperforming the market?
Replies: 112
Views: 6815

Re: How to lose the desire of outperforming the market?

Just holding the market (close to VT) and ignoring sectors, factors and all this noise would give me a lot of peace. But I'm still left with that urge to add just another 1%/year in returns. How can I lose this? Maybe you should save 1% more every year. Regards, I can’t believe this analogy has nev...
by retired@50
Thu Apr 08, 2021 11:20 pm
Forum: Personal Investments
Topic: I cant find anything better than S&P
Replies: 50
Views: 3772

Re: I cant find anything better than S&P

Just putting money in S&P is what I am doing. The S&P 500 fund at Vanguard was the first index fund I ever purchased. I still own it today, nearly 25 years later. At 4 basis points (current cost), it's practically free, and you never have to worry about under-performing the S&P 500. I'l...
by retired@50
Thu Apr 08, 2021 1:58 pm
Forum: Personal Investments
Topic: Sidedoor Roth
Replies: 33
Views: 2011

Re: Sidedoor Roth

The losing money in one account, to gain in another, starts to sound an awful lot like a wash sale, especially when you own both sides of the trade. Regards, The wash sale rule only prevents you from claiming the loss. It does not make the transaction itself prohibited. That's not to say that what ...
by retired@50
Thu Apr 08, 2021 12:37 pm
Forum: Personal Investments
Topic: Sidedoor Roth
Replies: 33
Views: 2011

Re: Sidedoor Roth

The losing money in one account, to gain in another, starts to sound an awful lot like a wash sale, especially when you own both sides of the trade.

Regards,
by retired@50
Thu Apr 08, 2021 10:08 am
Forum: Personal Investments
Topic: Consolidate Fidelity to Vanguard or not
Replies: 33
Views: 2380

Re: Consolidate Fidelity to Vanguard or not

I think the reasoning was for tax efficiency since FSKAX is supposed to be less tax efficient. If you leave the account at Fidelity, then you could use VTI, which is the Vanguard ETF equivalent for VTSAX, the total US stock market index. This will help solve the tax efficiency issue. If you don't w...
by retired@50
Wed Apr 07, 2021 11:49 pm
Forum: Personal Investments
Topic: HELP - How to Allocate $5M in retirement funds
Replies: 18
Views: 2802

Re: HELP - How to Allocate $5M in retirement funds

Hello, I'm looking for advice on how to help my recently widowed mother allocate her retirement funds. I'm thinking... Way too complex in my opinion. Too many funds. Since she's at Fidelity, I'd suggest you use the 3-fund portfolio and just use the low-expense ratio index funds they offer. FSKAX fo...
by retired@50
Wed Apr 07, 2021 11:28 pm
Forum: Personal Investments
Topic: Simplicity over Small Cap Value
Replies: 66
Views: 4093

Re: Simplicity over Small Cap Value

Thank you all for your responses. Sorry that I have been spamming the forum with what seems to be the same thing. I will go with TSM index funds for simplicity and to avoid behavioral mistakes. I feel like I have fast tracked Rick Ferri's 4 stages over the last few months: Stage 1: Darkness (know n...
by retired@50
Wed Apr 07, 2021 11:24 pm
Forum: Personal Investments
Topic: Brokerage account - what to buy?
Replies: 13
Views: 1194

Re: Brokerage account - what to buy?

Hi, we are in our late 30s, tax bracket @ 32% Fed and 11% state. Our portfolio is mainly in tax deferred accounts, with about 10% in Roth, and <2% in taxable brokerage account. . Tax deferred accounts: 40% TRF, 52% total stock markets (VTSAX, vanguard 500 index), and 8% bonds (VBILX, VBLAX) . Roth ...
by retired@50
Wed Apr 07, 2021 5:40 pm
Forum: Personal Investments
Topic: Brokerage account - what to buy?
Replies: 13
Views: 1194

Re: Brokerage account - what to buy?

Consider Vanguard California Intermediate Term Municipal Bond Fund (VCAIX) if you decide on using municipal bonds.

They also have a long-term CA muni fund if that is of interest (VCITX).

Regards,
by retired@50
Wed Apr 07, 2021 4:09 pm
Forum: Personal Investments
Topic: Buy more bonds now or wait?
Replies: 24
Views: 4489

Re: Buy more bonds now or wait?

SlowPoke wrote: Wed Apr 07, 2021 2:38 pm Thank you all for the many ideas. Hudson, I may go ahead and get the Swedroe bond book https://www.amazon.com/Only-Guide-Winni ... 0312353634. I’ll start with the free part I can read online!
Check your local library... Where all books are free.

Regards,
by retired@50
Wed Apr 07, 2021 2:21 pm
Forum: Personal Investments
Topic: Simplicity over Small Cap Value
Replies: 66
Views: 4093

Re: Simplicity over Small Cap Value

How much extra?

Nobody knows. It could work out worse.

Regards,
by retired@50
Wed Apr 07, 2021 1:42 pm
Forum: Personal Investments
Topic: How to lose the desire of outperforming the market?
Replies: 112
Views: 6815

Re: How to lose the desire of outperforming the market?

Stef wrote: Wed Apr 07, 2021 10:56 am Just holding the market (close to VT) and ignoring sectors, factors and all this noise would give me a lot of peace. But I'm still left with that urge to add just another 1%/year in returns. How can I lose this?
Maybe you should save 1% more every year.

Regards,
by retired@50
Wed Apr 07, 2021 1:34 pm
Forum: Personal Investments
Topic: Reinvesting dividends in Roth IRA account
Replies: 9
Views: 838

Re: Reinvesting dividends in Roth IRA account

Which fund is held in common between the two accounts?

Regards,
by retired@50
Wed Apr 07, 2021 10:23 am
Forum: Personal Investments
Topic: Do in-house funds lock you in to brokerage?
Replies: 7
Views: 276

Re: Do in-house funds lock you in to brokerage?

Why not FSKAX? The Fidelity Total Market Index Fund, which is transferable.

As I understand it, buying a Vanguard mutual fund (VTSAX) at Fidelity will incur a $75 fee.

If you prefer to use a Vanguard product AT Fidelity, then using VTI would be better.

Regards,
by retired@50
Wed Apr 07, 2021 10:16 am
Forum: Personal Investments
Topic: Retirement readiness and plan
Replies: 9
Views: 1302

Re: Retirement readiness and plan

My understanding is that leaving the Roth IRAs to the kids won’t provide the same benefit as leaving them taxable or tax-deferred assets where the step-up value works in their favor. You’ve already paid the taxes on the Roth assets. I'm not aware of any step-up in basis for tax-deferred assets. Do ...
by retired@50
Tue Apr 06, 2021 11:21 pm
Forum: Personal Investments
Topic: Anxiety/Overthinking
Replies: 35
Views: 2694

Re: Anxiety/Overthinking

What do you think about ETFs like AVUV and AVDV who some, like Ben Felix, say capture the small value premium better? Let me get back to you on that... I've not heard of AVUV or AVDV until this week. Regards, Thanks Hard to say with such a short track record (under 2 years). Since I'm not a small c...
by retired@50
Tue Apr 06, 2021 8:35 pm
Forum: Personal Investments
Topic: Anxiety/Overthinking
Replies: 35
Views: 2694

Re: Anxiety/Overthinking

investingforbank wrote: Tue Apr 06, 2021 8:32 pm
What do you think about ETFs like AVUV and AVDV who some, like Ben Felix, say capture the small value premium better?
Let me get back to you on that... I've not heard of AVUV or AVDV until this week.

Regards,
by retired@50
Tue Apr 06, 2021 8:31 pm
Forum: Personal Investments
Topic: Anxiety/Overthinking
Replies: 35
Views: 2694

Re: Anxiety/Overthinking

Hi. I have a history of anxiety and tend to always overthink things. I cannot help but feel like I am not doing things optimally. I am 18 years old, will be studying engineering at a good school next year (no debt because my dad is amazing). ... Am I doing things right? I know that I am ahead of th...
by retired@50
Tue Apr 06, 2021 8:22 pm
Forum: Personal Investments
Topic: Anxiety/Overthinking
Replies: 35
Views: 2694

Re: Anxiety/Overthinking

Hi. I have a history of anxiety and tend to always overthink things. I cannot help but feel like I am not doing things optimally. I am 18 years old, will be studying engineering at a good school next year (no debt because my dad is amazing). ... Am I doing things right? I know that I am ahead of th...
by retired@50
Tue Apr 06, 2021 8:11 pm
Forum: Personal Investments
Topic: How should I invest cash just sitting in the bank?
Replies: 27
Views: 3976

Re: How should I invest cash just sitting in the bank?

When I was working, I used my taxable brokerage account as another place to save for retirement. Since I was able to save more than I was allowed to put into my 401k and Roth IRA, I used a taxable account as an overflow account and made monthly deposits after paying my bills. If you're considering r...
by retired@50
Tue Apr 06, 2021 7:28 pm
Forum: Personal Investments
Topic: Roth Conversion Timing
Replies: 10
Views: 747

Re: Roth Conversion Timing

Conversions in calendar year 2021 will be reported on your 2021 taxes.

Regards,
by retired@50
Tue Apr 06, 2021 7:04 pm
Forum: Personal Investments
Topic: What to do with inherited Nuveen muni bonds
Replies: 9
Views: 780

Re: What to do with inherited Nuveen muni bonds

The bonds have all taken losses which total around ~2-3K. The other income fund seems to show gains of about ~1K. So I think you're right in that there was a step up in basis. Perhaps it is indeed a good time to sell. I've been looking at VCAIX and VCITX or even VWIUX (national, intermediate). Thou...
by retired@50
Tue Apr 06, 2021 5:56 pm
Forum: Personal Investments
Topic: Inherited Trust Portfolio - Planning Advice
Replies: 6
Views: 811

Re: Inherited Trust Portfolio - Planning Advice

Questions: 1. Should I be worried about a large percentage of my portfolio being tied to AAPL and BRK.A? Should I aim to transfer these holdings to the other index funds I am invested in? 2. What is the best use of the cash sitting in the Money Market Account? Should I just set it into the funds? 3...
by retired@50
Tue Apr 06, 2021 5:46 pm
Forum: Investing - Theory, News & General
Topic: Understanding asset allocation, portfolio performance, and correlation coefficients
Replies: 24
Views: 1419

Re: Understanding asset allocation, portfolio performance, and correlation coefficients

For what it's worth, your memory seems to be pretty good. The book is called "Asset Allocation: Balancing Financial Risk" by Roger C. Gibson.

See link: https://www.goodreads.com/book/show/170 ... allocation

Regards,