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Placement of Balanced Fund and Stock Funds in Roth Accounts

I invest in the C, S, and G funds in my Roth TSP and have the Lifestrategy Growth in my VG Roth IRA. Obviously I focus on maxing-out these accounts before considering taxable investing, so I was wondering if their is a significant negative impact on tax-efficiency by placing these funds in a Roth ac...
by TVKNSC
Wed Apr 09, 2014 11:07 am
 
Forum: Investing - Help with Personal Investments
Topic: Placement of Balanced Fund and Stock Funds in Roth Accounts
Replies: 2
Views: 260

Re: Reinvest Dividends or Use those Funds to Rebalance?

GV,
Thanks. No, I will only add money to those taxable accounts if I have funds leftover after maxing out my ROTH TSP and IRAs. As yearly rebalancing approaches, one option I just thought of is to make a temporary contribution allocation adjustment to my TSP if my desired AA gets out of whack (5/25).
by TVKNSC
Sun Mar 30, 2014 11:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Reinvest Dividends or Use those Funds to Rebalance?
Replies: 11
Views: 662

Reinvest Dividends or Use those Funds to Rebalance?

I currently have my dividends from VTIAX and VTSAX being reinvested. When it comes to rebalancing each year, I would prefer to add new monies vs. having to sell a portion of current assets to get back to my desired AA. My only issue with not reinvesting dividends is losing some of the power of compo...
by TVKNSC
Sun Mar 30, 2014 11:18 am
 
Forum: Investing - Help with Personal Investments
Topic: Reinvest Dividends or Use those Funds to Rebalance?
Replies: 11
Views: 662

Re: ROTH TSP: Good Mix between G, C, and S Funds?

I pulled the trigger today and went with 60%- C Fund, 15%- S Fund, and 25%- G Fund. A little upset I missed the great years that the C and S Fund just had, but I am sure I will get to experience it at some point in the future. Staying the course!
by TVKNSC
Thu Mar 20, 2014 11:57 am
 
Forum: Investing - Help with Personal Investments
Topic: ROTH TSP: Good Mix between G, C, and S Funds?
Replies: 6
Views: 500

Re: ROTH TSP: Good Mix between G, C, and S Funds?

I like that 4:1 approach. I read one of Larry Swedroe's books and it talked a lot about small caps and risk was definitely discussed in detail. Thanks again.
by TVKNSC
Wed Mar 19, 2014 7:09 pm
 
Forum: Investing - Help with Personal Investments
Topic: ROTH TSP: Good Mix between G, C, and S Funds?
Replies: 6
Views: 500

Re: ROTH TSP: Good Mix between G, C, and S Funds?

Please reference my initial post above after reviewing the below. I already posted this in a post a few months back, but it is always good to update with new information. Emergency funds: Yes. 6 months worth Debt: car loan = $12,000 (1.9%) and 30-year mortgage = $250,000 (3.4%) Tax Filing Status: Ma...
by TVKNSC
Wed Mar 19, 2014 4:06 pm
 
Forum: Investing - Help with Personal Investments
Topic: ROTH TSP: Good Mix between G, C, and S Funds?
Replies: 6
Views: 500

ROTH TSP: Good Mix between G, C, and S Funds?

As far as my ROTH TSP goes, I have been invested in all G-Fund over the past year to beef up my bond allocation, but now I am getting too bond-heavy. I am active National Guard, so I dont get the match, but it is still an outstanding investment. My desired asset allocation is 75/25 and I am in that ...
by TVKNSC
Wed Mar 19, 2014 12:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: ROTH TSP: Good Mix between G, C, and S Funds?
Replies: 6
Views: 500

Re: Reinvest Dividends or put Money Towards Mortgage

Jimb, I like your view on this subject. I totally am on-board with the emergency fund, tax-deferred, then taxable account approach. With the mortgage tax deduction, my rate after taxes is roughly around 2.7% or so. With inflation roughly in this ballpark, basically I am being loaned the money for fr...
by TVKNSC
Mon Dec 30, 2013 3:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Reinvest Dividends or put Money Towards Mortgage
Replies: 9
Views: 623

Re: Reinvest Dividends or put Money Towards Mortgage

Gotcha, Jimb. Great advice. I think my only second-guessing comes from the fact that will I really be in my current home for the next, say, 40 years? Something I need to seriously ponder before plopping money down to pay off the mortgage as quick as possible.
by TVKNSC
Mon Dec 30, 2013 1:25 pm
 
Forum: Investing - Help with Personal Investments
Topic: Reinvest Dividends or put Money Towards Mortgage
Replies: 9
Views: 623

Re: Reinvest Dividends or put Money Towards Mortgage

Jimb, Wow, great, detailed response. Thanks! Yes, I sure do max-out my Roth TSP and VG 2040 IRA each year, then add to taxable accounts as finances allow. Let me add that I have my fixed-income portion in TSP (G and F fund). I basically created a 3-Fund portfolio with the TSP G/F (tax-deferred), VG ...
by TVKNSC
Mon Dec 30, 2013 1:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Reinvest Dividends or put Money Towards Mortgage
Replies: 9
Views: 623

Reinvest Dividends or put Money Towards Mortgage

I currently have a 30-year mortgage with a fixed-rate of 3.75% and we're entering our 4th year of the mortgage. I currently choose to reinvest my dividends, but should I put this money towards the principal on my mortgage and try to pay it off a few years early? I hate debt, especially the interest ...
by TVKNSC
Mon Dec 30, 2013 11:39 am
 
Forum: Investing - Help with Personal Investments
Topic: Reinvest Dividends or put Money Towards Mortgage
Replies: 9
Views: 623

Re: Investing for Child's Retirement

My .02 on whether to put money towards their retirement in 60 years or not. Depending on your financial situation, what is the big deal about dropping, say, a one-time deposit of $5,000 in a VG index fund and let it compound interest for 60 years? I kick myself for not starting investing about 10 ye...
by TVKNSC
Thu Dec 26, 2013 6:17 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing for Child's Retirement
Replies: 11
Views: 919

Re: Investing for Child's Retirement

I am in the same boat at the OP and would like to add that you likely will need to open a custodial account through VG. I think the other option is a guardian account, but seems a bit more complicated than a custodial account. Your sons' will then will have full custody of those monies when they rea...
by TVKNSC
Thu Dec 26, 2013 1:54 pm
 
Forum: Investing - Help with Personal Investments
Topic: Investing for Child's Retirement
Replies: 11
Views: 919

Re: Which VG Account for Child to-be?

Critic,
You've been a great help. Thanks.
by TVKNSC
Wed Dec 25, 2013 9:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which VG Account for Child to-be?
Replies: 13
Views: 617

Re: Which VG Account for Child to-be?

Calm,
Of course waiting is the obvious answer, but time does fly and I wanted an idea of what I am looking at. Thanks for your input!?
by TVKNSC
Wed Dec 25, 2013 8:43 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which VG Account for Child to-be?
Replies: 13
Views: 617

Re: Which VG Account for Child to-be?

Ok. I never considered a VG ETF, but I will look into it. I've gathered that the first $950 of earned income from investments in a UGMA is generally tax-exempt. The subsequent income up to $950 is generally taxed at the child’s rate. Any income earned over $1,900 is generally taxed at the parent’s r...
by TVKNSC
Wed Dec 25, 2013 6:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which VG Account for Child to-be?
Replies: 13
Views: 617

Re: Which VG Account for Child to-be?

Cowboy, Excellent advice, and teaching good financial practices is for sure a goal. I think my main focus is to open an index fund and take advantage of compounding interest over the next 21 years. Age of majority in my state is 21, so the money would be turned over then. In a perfect world, the mon...
by TVKNSC
Wed Dec 25, 2013 4:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which VG Account for Child to-be?
Replies: 13
Views: 617

Which VG Account for Child to-be?

My wife and I are expecting our first child in July. I have done some research about UGMA/UTMA/529s and I really want to open a custodial account through VG. I really wish I started investing a little bit earlier than I did so this is my chance to get our child to-be started VERY early in life. The ...
by TVKNSC
Wed Dec 25, 2013 12:13 pm
 
Forum: Investing - Help with Personal Investments
Topic: Which VG Account for Child to-be?
Replies: 13
Views: 617

Re: Driving the Bus off the Cliff?

Great news. So I am now welcoming a bear market. :D
by TVKNSC
Tue Apr 09, 2013 12:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Driving the Bus off the Cliff?
Replies: 34
Views: 2673

Re: Driving the Bus off the Cliff?

Great input. I have no intentions of getting into active management, but wanted some of your expert feedback on this marketing campaign of active managers. All responses thus far have reinforced my belief in that process.
by TVKNSC
Tue Apr 09, 2013 11:06 am
 
Forum: Investing - Help with Personal Investments
Topic: Driving the Bus off the Cliff?
Replies: 34
Views: 2673

Driving the Bus off the Cliff?

I fully undertand the "stay the course" and not "timing the market" principles, but what can passive investors do ahead of another 2008 possibly happening down the road? It seems like "actively" managed accounts get more oversight, so they may have a better chance to av...
by TVKNSC
Tue Apr 09, 2013 10:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Driving the Bus off the Cliff?
Replies: 34
Views: 2673

Re: Payoff School Loan or Keep Investing?

Grabiner, Yes. Your input is appreciated. My ultimate goal is to have a 3-fund portfolio with total market, total international, and the TSP G-fund for my bond portion. Currently I am off-balance because of all the moves I have made since learning so much on this forum. Because of Hoppy's help, I am...
by TVKNSC
Thu Apr 04, 2013 9:12 am
 
Forum: Investing - Help with Personal Investments
Topic: Payoff School Loan or Keep Investing?
Replies: 12
Views: 1038

Re: Roth TSP Contribution Allocations

Hoppy.
Wow. What a detailed and helpful response. I will sit down to look at making these moves. One issue is that Google spreadsheet wouldnt open. Thanks again!
by TVKNSC
Thu Apr 04, 2013 8:50 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth TSP Contribution Allocations
Replies: 7
Views: 805

Re: Payoff School Loan or Keep Investing?

James, Right. I put the balanced fund in my Roth IRA because the fund is somewhat tax inefficient. To be honest, I have done these "target" funds in my IRA for years and really havent done enough research to know if their are better alternatives for my Roth IRA. I do max out these on a yea...
by TVKNSC
Wed Apr 03, 2013 10:21 am
 
Forum: Investing - Help with Personal Investments
Topic: Payoff School Loan or Keep Investing?
Replies: 12
Views: 1038

Re: Roth TSP Contribution Allocations

Hoppy, No problem. I posted this in one of my initial posts, but I had to make some tweaks to it. Emergency funds: Yes. 6 months worth and it is in ING Debt: school loan = $8,000 (2.9%), car loan = $17,000 (1.9%) , and 30-year mortgage = $250,000 (3.4%) Tax Filing Status: Married Filing Jointly Tax ...
by TVKNSC
Wed Apr 03, 2013 8:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth TSP Contribution Allocations
Replies: 7
Views: 805

Re: Payoff School Loan or Keep Investing?

Wow. Great responses and insight. I truly appreciate all you're doing.
by TVKNSC
Wed Apr 03, 2013 8:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Payoff School Loan or Keep Investing?
Replies: 12
Views: 1038

Payoff School Loan or Keep Investing?

Besides our mortgage and a $275 monthly payment on a car loan with a really low rate, an $8,000 school loan at 3% interest is our biggest debt. I understand that we will receive a tax credit from the student loan interest we paid, but should I put this money into a taxable retirement account and mak...
by TVKNSC
Tue Apr 02, 2013 4:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Payoff School Loan or Keep Investing?
Replies: 12
Views: 1038

Re: Roth TSP Contribution Allocations

I have a concern about my bond allocation. I am well aware of the "age in bonds," but I recently moved to the "3-fund" approach. The issue is, I am not balanced with my bonds. I can only contribute $17,500 to this TSP each year, so I am kind of in a pickle. I only have $5,800 in ...
by TVKNSC
Tue Apr 02, 2013 3:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth TSP Contribution Allocations
Replies: 7
Views: 805

Re: Invest all this Money into VTSAX Admiral?

Z3 & LM,
Yes, I fully agree with both of your assessments. I have roughly 33% international and tax-efficiency seems to be pretty subjective. I am willing to be tax-efficient, even if the return isn't eye-opening.
by TVKNSC
Wed Feb 13, 2013 10:00 am
 
Forum: Investing - Help with Personal Investments
Topic: Invest all this Money into VTSAX Admiral?
Replies: 18
Views: 2228

Re: Invest all this Money into VTSAX Admiral?

LM, Yea, I owned the Wellington for about 3 weeks, so should the tax implications be a concern? I think the value in the fund is the same it was 3 weeks ago. I agree on the F-fund, but I will hold onto a little bit of it until rates start to rise, then I will go all G-fund. From what i've gathered, ...
by TVKNSC
Tue Feb 12, 2013 1:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Invest all this Money into VTSAX Admiral?
Replies: 18
Views: 2228

Re: Invest all this Money into VTSAX Admiral?

any final thoughts? I am looking at pulling trigger on the following: Exchange Wellington admiral for VTSAX and VTIAX Reset TSP allocation by removing TSP 2040 and moving to all bonds (F and G funds) This will give me the 3-fund portfolio I have been looking for, and my stocks will now be in tax-eff...
by TVKNSC
Mon Feb 11, 2013 3:18 pm
 
Forum: Investing - Help with Personal Investments
Topic: Invest all this Money into VTSAX Admiral?
Replies: 18
Views: 2228

Re: Invest all this Money into VTSAX Admiral?

Man I wish could nail this down! Ideally I would like the VTSAX admiral for the low ER, so my only initial option in the taxable would be $50,000 into VTSAX and $10,000 into total international. I would then contribute all my TSP allocation to the G-Fund and dont even use TSP I-Fund? Keeping AA in m...
by TVKNSC
Mon Feb 11, 2013 10:26 am
 
Forum: Investing - Help with Personal Investments
Topic: Invest all this Money into VTSAX Admiral?
Replies: 18
Views: 2228

Re: Invest all this Money into VTSAX Admiral?

Right now I have the TSP 2040, so what if I did this allocation change: 50% of TSP contribution into TSP I-Fund (international stock) 50% of TSP contribution into TSP G-Fund (government securities) Then put $60,000 I referenced into the VTSAX (admiral)? I would then add about $1500 per month to VTSA...
by TVKNSC
Mon Feb 11, 2013 9:44 am
 
Forum: Investing - Help with Personal Investments
Topic: Invest all this Money into VTSAX Admiral?
Replies: 18
Views: 2228

Re: Invest all this Money into VTSAX Admiral?

Ok, thanks. Well your advice would mean I just stay with Wellington Admiral, which I am definitely not against. I know this gets off-topic, but Is is too early to worry about the rise of interest rates impacting bond funds? Or shouldnt that be much of a concern given we dont know when they will spik...
by TVKNSC
Sun Feb 10, 2013 5:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: Invest all this Money into VTSAX Admiral?
Replies: 18
Views: 2228

Re: Invest all this Money into VTSAX Admiral?

Thanks for the response. Yes, I am drawn to the 3-fund approach, with total market, total international, and total bond. Like in my initial post, the lifestrategy growth appealed to me, but that seems very similar to our current 2040. I realize that the Lifestrategy growth's ER is 0.17%, which is gr...
by TVKNSC
Sun Feb 10, 2013 5:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Invest all this Money into VTSAX Admiral?
Replies: 18
Views: 2228

Invest all this Money into VTSAX Admiral?

We currently max-out our Roth TSP 2040 and VG 2040s each year. I recently placed $60,000 into Wellington Admiral from ING. Although I like AA of the Wellington, it appears it isnt very tax-efficient, so should I exchange for VG total stock market index (admiral)? I am better understanding the AA, bu...
by TVKNSC
Sun Feb 10, 2013 4:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Invest all this Money into VTSAX Admiral?
Replies: 18
Views: 2228

Re: Roth TSP Contribution Allocations

Hoppy, Great help! Yes, I prefer to be in that 80/20 range..My main concern with the L2040 is I really haven't gotten a great return over the past 3 years. I really look at it as more of a savings account with great potential for growth and tax efficiency, so I am not overly upset about it. I did th...
by TVKNSC
Sat Feb 09, 2013 11:11 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth TSP Contribution Allocations
Replies: 7
Views: 805

Roth TSP Contribution Allocations

I currenlty have %100 of my monthly contribution going into the TSP Lifecycle 2040, a fund which invests in the G, S, C, F, and I Funds. With my moderately aggressive style, is this a good course of action or should I just focus on 2-3 of the funds vs. a 2040 which dabbles in all 5?
by TVKNSC
Sat Feb 09, 2013 9:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth TSP Contribution Allocations
Replies: 7
Views: 805

Re: How to Use Tax-Advantages in Investing

I hear you, letsgo. Like I said, although I have always been frugile with my money, I am just recently getting into the "weeds" with investing. I actually may increase my monthly allotment so I hit that TSP max-out amount each year. The traditional IRA was attractive to me because it may h...
by TVKNSC
Sat Feb 09, 2013 9:16 am
 
Forum: Investing - Help with Personal Investments
Topic: How to Use Tax-Advantages in Investing
Replies: 10
Views: 1044

Re: How to Use Tax-Advantages in Investing

I will tell you, this site has had quite an impact on me..All good, of course. Anyway, I feel I have a better grasp of the tax-efficiency that goes along with investing. I guess my concern with the total market index is the level of aggression. I max out my VG Roth each year, but I have thought abou...
by TVKNSC
Fri Feb 08, 2013 4:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to Use Tax-Advantages in Investing
Replies: 10
Views: 1044

Re: How to Use Tax-Advantages in Investing

Thanks for the response. Does it matter that I employ the "buy-and-hold" strategy? I really have no plans to touch the capital gains/ dividends for at least 12 months, probably more like 30 years!! If that's the case, wouldn't I only pay the %15 on the Wellington if I choose to sell it in,...
by TVKNSC
Fri Feb 08, 2013 1:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to Use Tax-Advantages in Investing
Replies: 10
Views: 1044

Re: How to Use Tax-Advantages in Investing

Grabiner,
Great response! I am curious how a stock index fund loses less to taxes? It is probably a simple answer, but one I cant figure out. Any recommendations on a reliable VG Stock Index Fund?
by TVKNSC
Fri Feb 08, 2013 12:46 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to Use Tax-Advantages in Investing
Replies: 10
Views: 1044

How to Use Tax-Advantages in Investing

I currently have about 30% of my assets in a taxable retirement account, while I have about 55% in tax deferred accounts (ROTH TSP/IRA). I go with ROTH IRA because I dont like playing that "what tax bracket will I be in" game. Plus I would rather the savings grow in a tax-free account unti...
by TVKNSC
Thu Feb 07, 2013 3:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: How to Use Tax-Advantages in Investing
Replies: 10
Views: 1044

Re: What Vanguard Fund for $15,000 Investment?

Based on my initial post and with my current AA/diversification, is staying the course with Wellington a good idea for my taxable account? If so, I could put the remaining funds into Wellington. After some research, i like the 3-fund portfolio model that the 2040 follows. I also like the 65/35 AA wi...
by TVKNSC
Tue Feb 05, 2013 2:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: What Vanguard Fund for $15,000 Investment?
Replies: 5
Views: 1038

Re: Where to Invest Emergency Fund and Money that's in ING?

WILKED, I am on-board with you. We are actually paying off the 6.8%er in-full this week and the rest if going towards my school loan. I hope to have mine paid off by July. I actually just revised my TSP and now I am putting in $1,000 a month into a ROTH 2040 TSP. I know I can max out at $17,500, but...
by TVKNSC
Tue Feb 05, 2013 1:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Where to Invest Emergency Fund and Money that's in ING?
Replies: 23
Views: 2829

Re: What Vanguard Fund for $15,000 Investment?

WHL,
Thanks on response. The TSP contributions in traditional TSP do not drop me to the 15% bracket. It may if I max out TSP ($17,500) for the year, but I currently dont come near that much.
by TVKNSC
Mon Feb 04, 2013 4:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: What Vanguard Fund for $15,000 Investment?
Replies: 5
Views: 1038

What Vanguard Fund for $15,000 Investment?

Emergency funds: Yes. 6 months worth Debt: school loan = $12,000 (2.9%), school loan = $10,000 (6.8%), car loan = $17,000 (1.9%). I am looking to pay off the loan at 6.8%. , and 30-year mortgage = $250,000 (3.4%) Tax Filing Status: Married Filing Jointly Tax Rate: 25% fed/7% state State of Residence...
by TVKNSC
Mon Feb 04, 2013 4:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: What Vanguard Fund for $15,000 Investment?
Replies: 5
Views: 1038

Re: Where to Invest Emergency Fund and Money that's in ING?

is it okay to bump this towards the top? I am new to the forum and it gets a lot of activity.
by TVKNSC
Mon Feb 04, 2013 12:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: Where to Invest Emergency Fund and Money that's in ING?
Replies: 23
Views: 2829

Re: Where to Invest Emergency Fund and Money that's in ING?

L&G, This will help in getting a clearer picture of my situation: Emergency funds: Yes. 6 months worth Debt: school loan = $12,000 (2.9%), school loan = $10,000 (6.8%), car loan = $17,000 (1.9%). I am looking to pay off the loan at 6.8%. , and 30-year mortgage = $250,000 (3.4%) Tax Filing Status...
by TVKNSC
Mon Feb 04, 2013 10:07 am
 
Forum: Investing - Help with Personal Investments
Topic: Where to Invest Emergency Fund and Money that's in ING?
Replies: 23
Views: 2829
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