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Food for thought & consideration. As always, your suggestions are very much appreciated. Thank you! - Shaoya

Thanks, Boglenaut, Yes, my intention is to rebalance inside of tax-advantage accounts. Any suggestions on the best way to do this?

I'd like to re-balance our portfolio, but what is the optimal way to do it? In reviewing our portfolio, after the recent stock market run-up, I realized that we've surpassed our equity/bond allocation by ~3%. My (soon-to-be-written!) IPS says I should re-balance when our AA is out of whack by 2.5% o...

1) I feel that the default action should always be to do nothing--"Don't just do something, stand there"--unless you can articulate a convincing reason, convincing to yourself , as to why doing nothing is clearly a mistake that's big enough that you need to fix it. 2) Do you have any writ...

Errrrr...yes. Fingers typed before brain processed. Excuse me while I use savings from my lower Vanguard ER's to buy myself a hole....

letsgobobby wrote:
Agree with livesoft: given your 24% tax bracket,

Actually, we're in the 15% Fed, 9% Oregon tax brackets for 2011 (and probably for the near future). Does that change anything? Thank you all for your input....

Thank you, Livesoft, I'll consider what you've advised. Additional feedback on my questions would be greatly appreciated? Thank you!

Please note: neither of us has any employer match in our 457's. [This wasn't stated in my original post.]

In November 2011, I had a very helpful experience with Vanguard by having them assess my portfolio & financial goals and then send me a ~30 page Financial Plan (which was then followed up with a 45 min. telephone discussion with one of their CFP's). It was gratifying to have him tell me that my ...

Accchhhh! I should have searched for past discussions; thanks Bob's not my name for bringing these to the surface. Much appreciated.

I've been reading with great interest the section on tax-adjusted asset allocation on the Bogleheads Wiki http://www.bogleheads.org/wiki/Tax-Adjusted_Asset_Allocation I've applied the tenets to my own AA, which - not surprisingly - make it quite different. I'm trying to understand the rationale for ...

Taylor,touchdowntodd, hand, & DSInvestor: thank you very much for your responses. Food for thought that's very much appreciated. - Shaoya

I would question the allocation of any dollars to the 529 funds if you are not maxing out your retirement funds. Thanks, hand. Why exactly? Given that we have low six-figures now, albeit in taxable funds (inheritance), wouldn't that make the competing priority of college funds also important? Pleas...

The arrival of another child (2010) and her entry into daycare (2011) necessitates that we actually adhere to our budget to meet expenses & investment intentions. After reconfiguring our budget, I've determined we have $2232 to invest each month. Currently, this sum is allocated across several i...

First, Word, good for you! My wife & I traveled and did public health work in South Asia and West Africa (amongst other places) for almost 13 months in 05-06. Though there were occasionally hairy moments, the year now regularly brings back rich & powerful memories to us both. You'll never fo...

Thank you both!

mikep wrote:Pay cash if you have a full EF, since with a higher loan amount it slightly raises those other fees that are a % of the loan amount.

What's EF? Equity Financing?

Today I locked-in a rate on a refi of our mortgage. I'm trying to decide whether to pay the closing costs in cash or finance those, too. The numbers looks like this: Current mortgage principal: $316K 30-year fixed at 4.75%. New locked-in rate will be 3.875% for 30-year fixed with 0.65% origination f...

dbr, you bring up an excellent point about the rationale for portfolio planning!
Thank you all, again, for your input. - Shaoya

What do others think of the suggestions given here?

Thank you all; your thoughts are insightful. Holding tax-exempt bonds in a tax-advantaged location would be like wearing a raincoat inside the house. Yes, of course. Duh. I got fixated on avoiding that 9% OR tax! 4) Consider holding less Small Cap Value since you are unsure if 7.9% might be too much...

Replies to my earlier BH posting on REIT's let me know that our Vanguard Limited-Term Tax Exempt (VMLTX) (0.20%) is incorrectly placed. It's currently in taxable, but it (or another bond substitute) should be in tax-advantaged. Simultaneously, I'd like to tilt our portfolio to SCV. I'd like to excha...

Wow...I've learned quite a bit from this thread. Thanks - all of you - Shaoya

Okay, I can see this is a needed education for me. However, this does not apply to you because you do have room to hold all the bonds in tax-advantaged . How is it that you can tell we have room? As I understand it, in 2010, we each can defer/contribute $16500 in our jobs' 457 plans & $5000 in o...

Thank you all for your insights; they were all appreciated & give food for thought. Retiredjg - as you have in the past, you've restated my queries perfectly. I appreciate your suggestion to keep a REIT stake in the stock allocation. I knew we had some REIT exposure in the VTSAX & VTSMX fund...

Rick Ferri’s “All About Asset Allocation – 2nd Edition,” which came out this summer (Nice job, Rick), has really got me thinking about diversification beyond equities/bonds to lower risk in our long-term portfolio. Specifically, I’m interested in REITs because of their lower correlation with bonds a...

Good idea, but looks like ~$600 in dividends after Q1 2010. [Vast majority is in VG Total Stock Market Index Admiral.] Unfortunately, this decision needs to be made in next few weeks. Other ideas? Thanks

Our neighborhood association has put together an opportunity for households to have solar panels installed. The price, through bulk-purchasing, together with state & federal tax credits, makes this an amazing opportunity e.g. a 3.5 kilowatt system has a net cost of ~$4,900 (but with an upfront c...

1) If you chose 25% Bonds and 5/25 Bands to rebalance, the sucker can go to 20% or 30% - so 22% is just fine. 2) If you chose 30% Bonds, the range is 25% to 35% - so 22% is not such a big deal and very close to staying within a 25% Band. Thank you...I don't really understand what this means. Please...

Shaoya, just wanted to confirm your desired AA. In your first post you said you want 75/22/3. I'm assuming this is 75% stock. In your last post you said you're considering 25-30% stock Paul, sorry, I bungled it; I meant increasing bonds to ~25-30%. For the record, currently we're 78/22, Stock/Bond....

Of course, if you are worried about diversifying more to protect against market movement, the best way is to get the AA down to about 65% stock. You are currently aggressive considering age, but to an extreme. Yes, I'd consider decreasing stock to ~25-30%, but how can I do that quickly i.e not D.C....

In looking at our AA (below), I’d like to diversify our non-equity stake further, but not sure how to do it relatively quickly. Asset Allocation Current Overall: 78/22 Stock/Bond Current Stocks: 76/24 Domestic/Foreign Desired 75/22/3 in REITs, GNMA, Muni's, what? Questions: 1) How can we diversify r...

jpsfranks: thanks for this. Are you talking about a CD? I'm under the impression that your money is locked in for the duration of the CD (1-year, 2-year, etc.) and that getting it out (because of an emergency, per se) requires a fee. Is this correct? Please give me some specific examples of the acco...

RobG & Taylor: Wow! Thank you both for educating me; it's much appreciated. - Shaoya

First, thank you all for your ideas. Yes, Taylor, I meant to specify "taxable bonds should only be in tax-advantaged accounts." Tax-exempt bonds are designed for use in taxable accounts by high-income taxpayers. Okay, does this also hold for 15% bracket-ers? Or is having VG Short-Term Bond...

I'm considering moving 1/2 of our Emerg. Fund (4-6 months living expenses) from VG Prime Money Market (VMMXX) (0.28%) to VG Short-Term Bond Index Fund (VIBSX) (0.22%) in order to get a better return relative to what is currently possible with VMMXX (7.88%-VIBSX vs 1.15%-VMMXX over the past year). Se...

Thank you all for your ideas; they're appreciated.

Any other opinions on our current portfolio?

Shaoya

Ut-oh! I should have been clearer: I’m not looking to change things to the Coffeehouse Portfolio, especially after just dramatically revamping things two weeks ago. [Chasing the strategy du jour would surely lead to insanity (and poverty).] I need to let my new portfolio (below) sit for a while... M...

I’ve gone ahead and shifted my (many) expensive actively traded funds to just VBMFX, VGTSX, and VTSMX in both taxable and tax-advantaged accounts, per the suggestions of several Bogleheads. [It was a cathartic experience!] I’ve also been re-reading Bill Schultheis’ The Coffeehouse Investor (http://w...

Thank you all for your help. I hear you loud & clear - VG Health Care (VGHCX) is out of place here. [Truth to tell, it's continued presence in taxable was pure emotion; I didn't want to take a (relatively slight) loss as I bought it in the first place. I can't blame others.] It's outta here! (an...

After percolating on much-appreciated Boglehead advice, I’m ready to shift out of pricier VG active funds, especially in our taxable accounts, to more tax-efficient fare. My new AA takes a few of retiredjg & YDNAL’s suggestions. [Thank you both as well Lauren, Frank, Taylor, and SamLJ!] In the c...

After percolating on much-appreciated Boglehead advice, I’m ready to shift out of pricier VG active funds, especially in our taxable accounts, to more tax-efficient fare. My proposal takes a few of retiredjg & YDNAL’s suggestions. [Thank you both as well Lauren, Frank, Taylor, and SamLJ!] In the...

Thank you all for your helpful comments. - Shaoya

I'm thinking about exchanging the funds below, all in Vanguard taxable accounts, into Vanguard Total Stock Mkt Idx (VTSMX), but am not sure about being hit with the "wash sale rule" (WSR). I spoke with Vanguard Voyager associate, and she said that she didn't "have the resources" ...

Yes, Taylor, you're correct. One more question: [quote]Some investors like to "tilt" Total Stock Market Index Fund which will require additional funds (probably in your tax-deferred account(s))[/quote] By "tilt," think you mean a minor amount of diversification, right? We have Sm...

I'm reconsolidating a bunch of taxable and pre-tax (retirement) funds. As I've learned from you all, some of my taxable (eg Windsor II - VWNFX) are tax-inefficient? [This in addition to the inherent advantages of indexing for the long-haul.] Are there any disadvantages to dumping them all into two s...

Thanks YDNAL, retiredjg, and SamLJ. These are the insights that I needed. Retiredjg, no family pressure on the placement - just was interested in the logic. As I'm sure you can appreciate, I didn't want to shift around big portions of our pie without knowing more. I really appreciate the expertise y...

Thanks, retirejg! Any thoughts on our other question? (below, in italics) For our taxable, several of you have strongly advocated that we drop everything into two index funds: Total Stock Market (VTSMX) & FTSE All World Except US (VFWIX)/Total International (VGTSX), including our strong long-ter...

I'd appreciate it if anybody could offer a response to our remaining questions. Thank you! - Shaoya 1. For our taxable, several of you have strongly advocated that we drop everything into two index funds: Total Stock Market (VTSMX) & FTSE All World Except US (VFWIX)/Total International (VGTSX), ...

Lauren, Frank, Taylor, SamLJ, YDNAL, and retiredjg, thank you so much for your time and cogitation. My family and I really appreciate your help. I have a few more questions about your responses: 1. For our taxable, several of you have strongly advocated that we drop everything into two index funds: ...

Hi Lauren - Thank you so much for taking the time to help us out. I hear you on the need to simplify; I suspected as much. RE: selling in 2009 to simplify, as I understand it, if I sell now I can claim a lose in tax year 2009 (assuming that the shares of the sold fund were purchased at a higher pric...

Hello – My wife, one year-old son and I would really appreciate some advice from Boglehead readers. Below is our current portfolio in the Boglehead preferred format. Questions are at the end: [u]Investment & Finance Goals[/u]: Short-Medium Term (starting in 3 years). Using up to $3,000 (in today...