retiredjg wrote: ↑Sat May 27, 2023 7:38 pm What do you want to hold in taxable? I suggest a total stock index, a total international index (could be the VEU), and the Treasury Direct holdings. And maybe the cash reserves if you want them.
...I would not keep 500 index in taxable because it sets up possible wash sales with 500 index in the other accounts. I'd sell it and replace it with Total Stock. Hold your international allocation here too to get the foreign tax credit. Since you live in CA, a CA muni fund for part of your bond allocation is attractive.
Outer Marker wrote: ↑Sun May 28, 2023 11:10 pm Focus on getting rid of these in taxable
sodastream wrote: ↑Sat May 27, 2023 5:09 pm Our Taxable - $2M
24.3% IVV: iShares Core S&P 500 ETF (expense ratio .03%)
9.2% IEFA: iShares Trust Core MSCI EAFE ETF (.07%)
4.4% MDHIX: Mainstay Mackay Short Duration High Yield I (0.77%)
4.0% GBOSX: JP Morgan Global Bond Opportunities Cl I (0.65%)
3.8% MSYIX: Morgan Stanley Institutional High Yield Cl I (0.65%)
3.7% IEMG: iShares Inc Core MSCI Emerging Mkts ETF (.09%)
3.1% IJH: iShares Core S&P Mid-Cap ETF (.05%)
2.4% VEU: Vanguard FTSE All World ex-US ETF (.08%)
2.3% GSDIX: Goldman Sachs Emerging Markets Debts Instl (0.9%)
1.8% GSEW: Goldman Sachs Equal Weight US Large Cap Equity (0.9%)
1.2% EMXC: iShares Emerging Mkts ex-China (.25%)
3.0% FDRXX: Fidelity Govt Cash Reserves
1.5% SNVXX: Schwab Govt Money Market + HYSA accounts
0.8% Treasury Direct: I-Bonds & T-Bills
0.07% Individual Stock
1.5% Money Market, HYSA, Bank Account
The consensus seems to be to separate the positions, using S&P 500 for one type of account (taxable or tax-advantaged) and Total Stock for the other accounts to prevent potential wash sales.HomeStretch wrote: ↑Sun May 28, 2023 4:08 am There are no tax consequences for changing holdings in tax deferred and Roth accounts. Consider:
(1) holding 100% of your desired bond allocation in the Inherited IRA. This should result in lower growth/lower RMDs during what you expect to be higher income/tax years until retirement.
(2) holding one total market equity fund in the Roth IRAs.
Although many suggested a Total Stock fund for the taxable, I am realizing I should keep the IVV (S&P500) ETF there because the inherited IVV position has >$374K in unrealized gains. Even if I take some IVV gains now, I don’t want to take them all. (I also plan on donating some appreciated shares but it will not make a huge dent in the position.)
Outer Marker- suggested keeping the current positions in IEFA, IEMG, IJH, VEU in taxable too. Retiredjg - as you said I could use the VEU position in taxable for my international allocation. Should I add to these positions?
Keeping IVV in taxable means I need to liquidate IVV in the Inherited IRA, 401k and Roth accounts. The Inherited IRA is simple; I could replace it with 100% bonds there. For Total Stock I plan to buy VTI, but where should I do it—in the 401k, Roth 401k (planned mega backdoor), or 2 Roth IRAs? And if I buy VTI for one, what other ETFs/funds should I buy for the other retirement accounts to avoid wash sales? Wouldn't I want the highest growth for the Roth accounts?
Should I consider a 2030 target date fund? I wasn't a big fan (sold out of one earlier), but maybe it's an option for one of the retirement funds.
For the 30% non-equity allocation: I will buy all bonds (Treasuries? BND? Another?) for the Inherited IRA (17% of portfolio), some bonds (already have VGIT) in 401k (7%), and finally the rest (6%) in CDs, I-Bonds, T-bills, MMFs, and (maybe) Muni's in Taxable for liquidity, grad school, and monthly expenses (to do mega backdoor).
Thoughts?