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I don't know if Fidelity Spartan index funds are as tax-efficient as Vanguard ones. I am talking with respect to percentage of qualified dividends and lack of cap gains distributions. I own Fidelity Spartan funds in my 401(k) where I am not concerned about tax-efficiency, so I have not looked up th...

Ga--no SS tax and 65K retirement income exclusion once you are 65. I believe it is 35K at 62. This for each individual.
jerry

Dale_G wrote:I am outside the boundary on the aggressive side.

Why?

1. I am very unlikely to spend much of the money, so it is largely invested for younger heirs.
2. If I were their age my equity allocation would fall close to the "moderate" line.

Dale

+1
jerry

I switched from FSEMX to FSSVX for more SV tilt and lower er of fssvx= .09 cap.
Also have IJS in Roths and will be moving next yr to VBR
FSTVX in tax account

jerry

Agree with Fido advice especially if you are in this position? Long term horrizon 10yrs+ I have a 70% equity position as all my income needs are from Pensions, dividends, and SS. Roths 80% equities and are planned for heirs Munis in taxable 50% of bonds are Corporates in IRAs 0 TIPs-- have large SS ...

+1
jerry

FSTVX er=0.06% jerry FSTVX (Spartan® Total Market Index Fund - Fidelity Advantage Class) Looking at the prospectus, I'm a little confused if the total annual operating expense is 0.06% or 0.07%, but the point I was making is that, according to a member of the Fidelity 403b team, Fidelity does not o...

FSTVX er=0.06%

jerry

Thank you, very interesting. The old engineer in me just wants to keep optimizing. :sharebeer I know there are many retirees on this forum in similar situations, would still like to hear their opinion. :idea: jerry Hi Jerry, I'm not a retiree nor do I envision being in a similar situation to yours,...

Thank you, very interesting. The old engineer in me just wants to keep optimizing.

I know there are many retirees on this forum in similar situations, would still like to hear their opinion.

jerry

Reposting this thread as only one response over the Holiday. fredflinstone wrote: yes, LQD probably would have higher returns over 30 years but also would be more volatile (risky). 2008 Rick Ferri post: Retiree #2: Scenario: is taking little or nothing from their investment portfolio and will likely...

Although my AA is currently 65% equities, for my situation, the AA can be considered about 50% equities due to large SS TIPS equivalent. So I feel I meet Rick's criteria above. jerry Your heirs cannot inherit your SS payments (unless it is your spouse you are talking about), thus you cannot capital...

yes, LQD probably would have higher returns over 30 years but also would be more volatile (risky). 2008 Rick Ferri post: Retiree #2: Scenario: is taking little or nothing from their investment portfolio and will likely never take much. Action: The portfolio is going to heirs. If the heirs are young...

When I got my first job after finishing school (1971), and started saving for a house in an ordinary savings account. Interesting questions as to whether saving and investing are the same thing. When you pay for an education you are "investing" in human capital. investing is acquiring &qu...

Teacher---I count my SS as TIPS equivalent

jerry

The largest part of the differential was ever increasing annual tax on the RMDs. Well that is certainly the one. I am surprised at the size of the effect. Is the amount of your tIRA/401k a very large percentage of you total portfolio? Or perhaps the 15% is the difference in the future value of a sm...

I have confidence in my crystal ball for future tax rates as I have the flexibility with manageable income sources , Roths, Dividends, capital loss carry overs, etc. I have been managing my income sources to plan for the past 13 yrs in retirement. My primary assumptions are--- I doubt my tax rates w...

Doc, thanks for the cost answer. I have no cost issue as I can buy any fund in either taxable or deferred. My plan is to leave to the kids tax free $$ and pay as little taxes as possible on the way. The 3% may be a small issue but doesn't the additional taxes also need to be considered ? Am I missin...

The last several posts have all addressed the effect of lowering the withdrawal tax rate by one means or another. If these tax rate reduction schemes are applicable to you then the higher return assets should go into the ROTH provided there is no cost penalty involved. Even on the chance that the t...

retired 13 yrs ago. Portfolio has grown 3X with 50%deferred space converted to Roths. Withdrawals negative, pensions and SS cover 110% expenses for next 40 yrs. RMDs start in 3 yrs, Withdrawals(fido retire planner) will will be less than 1% for the first 12 yrs, 2% for the next 10, etc moved to no s...

.......There are many threads on this board that compare a ROTH and a tIRA. In the absence of changes in the tax rate and some inheritance issues which are really changes in the tax rate both types of accounts return the same after tax amount if both are funded with the same pretax amount. I.E a $1...

Have different assets in Roths and IRA due to different time hoirzons. Roths go to heirs-so >20yr time horrizon. IRA's start withdrawals in one year. Also have 15 yr deferred comp fund(deferred taxes also) that disappears in 4 years IRA = 50% of deferred space; 20% in 4 yrs Managing Dividends to sta...

Great thread. Many of us are struggling with placement of foreign investments. I got hammered last year with VSS non qual dividends in taxable. It is now in one of my Roths. Will investigate tax managed internationals. Have FSIVX and IEMX in taxable and VSS and IDV in Roths. And still not comfortabl...

David, thanks. Will do some additional analysis. As always , appreciate your advice. As you have advised in the past, the Foreign Tax credit is a bonus in taxable. I have kept Fsivx and VWO in taxable due to lower cap gains and lower dividends(compared to VSS). I do have the ability to move the emer...

rm wrote I can't find a good vehicle for EM small cap (apart from DFA which I don't have access to) Check out EWX and DGS. In a taxable account, I would avoid those two: EWX has distributed a lot of capital gains, and DGS is dividend-weighted and thus has a higher dividend yield, much of it non-qua...

pshonore--Thanks for the clarification.

jerry

Make sure these are all from taxable accounts. Look for UBTI, code V. also for deferred accounts. So far i have received 3 MLP's this year and all UBTI's are negative. In deferred accounts, the sum of the UBTI's has to be greater than $1000 to be taxable .http://www.ehow.com/how_5873375_report-k_1-i...

Ours looks like this: 40% VSS Vanguard FTSE all-world ex-US small-cap 31% VEU Vanguard FTSE all-world ex-US large-cap 09% FSGDX Fidelity Spartan Global ex-US 08% VWO Vanguard FTSE emerging markets 06% SCZ iShares MSCI EAFE small-cap 03% EWX S&P emerging markets small-cap 03% DGS WisdomTree Emer...

Would not have thought it would have been so all over the board with what folks were doing. A lot of very different allocations. And that is the big takehome you should get from this exercise. Far, far less is known about investing that you would ever believe from the confidence with which investin...

30% of equities = international
Both value and small tilt and dividend income avoidance.
TLH/ExDiv switch between VSS/SCV and VEU/FSIVX

20%-VSS----Roth
17%-VWO---taxable
33%-IDV-----LV--Roth
30% FSIVX--total int.--taxable

jerry

I do one, once a year. Have found over the past 10 years, that only 50% of the time I learn anything. But that is still learning. In the beginning(pre Bogleheads, Ferri, Berstein) learning AA and tax efficiency. I don't get invited to ML anymore as they have admitted that I understand IRAs, Roths, p...

I am tilted high as my investments are destined for my heirs

BINGO!!!!!!!!!!

100% qualified dividends--David this the most important factor for my situation.

Tax managed it is



And thanks for this and help in the past

Thanks David.

Glad someone clears the air. The financial industry sure has a thick veil over things that should be simple math.

jerry

Upon some reflection, if you're talking about $120K worth of FSEVX, the 2012 tax impact of a 3% capital gain distribution is about $540 (assuming all long-term gains and 15% rate). If you have $250K worth of loss carry forward, then $540 is a rounding error and would seem to not be worth your time ...

Does this mean IJS is less expensive? 2beachcombers: Your math appears correct, though as Livesoft says, don't get too invested in M*'s numbers. Livesoft has always steared me straight--this last tax comparison was actually from FIDO and I will have them explain. The important thing with thinking a...

I thought you just calculate the taxes YOU would pay on each of those invesments based on their dividends, qualified and non-qualified. You use your tax rates and look up the historical dividends. Thanks. :oops: Just realized I don't even care what the tax ratio is----my IJS holdings are in my Roth...

IJR on VB for SCB in taxable?

jerry

Quick comment: I would not use a reported "tax cost ratio" from any place on line to make decisions. I think one has to do the calculations from the dividends themselves. please educate me--could not find a good definition or how to calculate the tax ratio. I just compared several funds o...

TNG NEW QUESTION ON TAX RATIOS ISHARES S&P SMALLCAP 600 VALUE VANGUARD SMALL CAP VALUE ETF Tax Cost Ratio IJS 0.47% VBR 0.89% Is the following calculation correct? Multiplying the above ratios by 150K$ shows : VBR costs 1335$ subtract off(.29-.21) er * 150K yields 1215$ IJS costs 675$ Does this ...

I have just rebalanced and have moved VSS to my Deferred Roth. 3 reasons motivated this move(reduce current taxes-25% marginal tax bracket; Bernstein recommendation from Manifesto; and carryover cap gains to cover VSS cap gains). Replaced VSS $$ in taxable with additional VWO and FSIVX to maintain ...

FSTVX--99% FSEVX--71% ... It appears that you have listed the percentage of qualified dividends for these funds and not the ratio of qualifed:non-qualified dividends. That's confusing because you are writing about non-qualified dividends. Can you please clarfiy? Yes, you are correct. I did the rati...

For 2012, I calculated the ratio of qualified to total dividends for each of my taxable assets. I was surprised at the amount of non-qual dividends I had this yr. My situation: All assets to heirs, Bernstein IDA AA, 40% taxable, 30% IRA, 30% Roth, 250K carryover loss, Don't need the dividends(pensio...

I bought a +1M$ home with mold over 4000sqft of crawlspace . AC vents were condencing on the walls and water running down the walls. I am a Chemical Engineer and the problem was obvious to me when I scoped the house. Insulation installed upside down in the crawl space, dryer venting to basement, no ...

retired 13 yrs

some of us old greybeards are still in accumulation--taxable accounts for heirs/charity

Spartanlaw

Will do. Bogleheads are awesome.

Now I am wondering why I am still carrying this. My home owners policy has a 300k rider. Should this not be sufficient ? On the way to the Grocery store tomorrow, you get in a fender-bender. It is a 2011 Mercedes; the driver is an anesthesiologist at the hospital right down the road and his wife, a...

Don't forget IRMAA. Depending on where you are relative to the brackets, one high year and one low year might be less expensive than two equal years that are just into the next bracket. The difference in a bracket is about $1000 per person this year. I will be able to escape IRMAA by taking advanta...

spartanlaw You just need enough to cover your assets. That is why many auto neg cases like the example above settle for the covered amount. Not many lawyers (or their clients) want to take the chance of litigating and losing a case where a million dollar policy is put on the table. Interesting. I ha...

I got it--will leave very cheap umbrella alone

thanks to all