Taxable portfolio review (No leverage HFEA with scv-tilt?)

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Topic Author
econalex
Posts: 75
Joined: Fri Aug 31, 2018 9:44 am

Taxable portfolio review (No leverage HFEA with scv-tilt?)

Post by econalex »

Hi there,

I'm 31yr and employed. I have a taxable, 401k and Roth. Meaning to ask about my taxable allocation, and is there any tax-efficient way to move to my target portfolio. (Roth is in HFEA and 401k is Target Date 2060):

Current Taxable
66% VTI (Vanguard Total Stock Market Index Fund ETF)
28% VXUS (Vanguard Total International Stock Index ETF)
6% EDV (Vanguard Extended Duration ETF)

Target
40% VOO (Vanguard 500 Index Fund ETF
40% EDV (Vanguard Extended Duration ETF)
10% VIOV (Vanguard S&P Small Cap 600 Value ETF; any alt recommendation?)
10% Int'l SCV (any recommendation?)

Cheers :sharebeer

Edit:
Bond fund available in 401k
•Vanguard Total Bond Market Index Fund (VBMFX)
•Vanguard Short-Term Bond Index Fund (VBISX)
•Vanguard Inflation-Protected Securities Fund (VIPSX)
Last edited by econalex on Thu Jul 29, 2021 12:08 pm, edited 2 times in total.
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retiredjg
Posts: 54082
Joined: Thu Jan 10, 2008 11:56 am

Re: Taxable portfolio review

Post by retiredjg »

Unless you can liquidate what you have with no taxable gains or your income would be so low as to not be taxed, there is no tax efficient way to do what you are considering.

But why would you want to? What you have is now is pretty good although I don't know why someone would want long term bonds in taxable.

With no other information provided, this seems like bad and costly change all around.

PS. You should edit your post and include fund names. :happy
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ruralavalon
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Location: Illinois

Re: Taxable portfolio review (No leverage HFEA with scv-tilt?)

Post by ruralavalon »

econalex wrote: Thu Jul 29, 2021 11:17 am Hi there,

I'm 31yr and employed. I have a taxable, 401k and Roth. Meaning to ask about my taxable allocation, and is there any tax-efficient way to move to my target portfolio. (Roth is in HFEA and 401k is Target Date 2060):

Current Taxable
66% VTI (Vanguard Total Stock Market Index Fund ETF)
28% VXUS (Vanguard Total International Stock Index ETF)
6% EDV (Vanguard Extended Duration ETF)

Target
40% VOO (Vanguard 500 Index Fund ETF
40% EDV (Vanguard Extended Duration ETF)
10% VIOV (Vanguard S&P Small Cap 600 Value ETF; any alt recommendation?)
10% Int'l SCV (any recommendation?)

Cheers :sharebeer
Why do you have EDV (Vanguard Extended Duration ETF) in taxable?

What is the current amount of UNrealized capital gain or loss in that fund in your taxable account?

What is your tax bracket, both federal and state?

What bond funds are offered in your employer's 401k plan? Please give fund names, tickers and expense ratios.
Last edited by ruralavalon on Thu Jul 29, 2021 11:49 am, edited 1 time in total.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
Topic Author
econalex
Posts: 75
Joined: Fri Aug 31, 2018 9:44 am

Re: Taxable portfolio review (No leverage HFEA with scv-tilt?)

Post by econalex »

Thx for the reminder! Fund names added.

I do have decent capital gain in VTI, not so much in VXUS (obviously :oops: ). The intended goal is to achieve a diversified growth portfolio to buy&hold forever :twisted:

Tax is single :( 24%/5% Fed/State. Already maxing 401k and Roth but not much left to put into taxable :annoyed
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retired@50
Posts: 12835
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: Taxable portfolio review (No leverage HFEA with scv-tilt?)

Post by retired@50 »

econalex wrote: Thu Jul 29, 2021 11:49 am The intended goal is to achieve a diversified growth portfolio to buy&hold forever

Tax is single :( 24%/5% Fed/State. Already maxing 401k and Roth but not much left to put into taxable :annoyed
You might want to consider reading the wiki page on tax efficient fund placement. It might help you, especially if you're serious about the "forever" part above. Since paying more taxes than necessary can get pretty annoying year after year.

Link: https://www.bogleheads.org/wiki/Tax-eff ... _placement

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
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retiredjg
Posts: 54082
Joined: Thu Jan 10, 2008 11:56 am

Re: Taxable portfolio review (No leverage HFEA with scv-tilt?)

Post by retiredjg »

You might want to explain exactly what "no leverage HFEA with SCV-tilt" is since that is not typical or recommended Boglehead investing.
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