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Re: Fund placement across 401(k), Roth IRA, taxable

Just one last question: Is it typically advisable to adjust the 401(k) and taxable balances by 1-marginal tax rate? I do not tax adjust. It is unlikely that every dollar in the Trad 401k and taxable accounts will be taxed at your marginal rate. Current rules allow for Qualified Dividends and Long T...
by Triple digit golfer
Wed Dec 17, 2014 11:48 am
 
Forum: Investing - Help with Personal Investments
Topic: Fund placement across 401(k), Roth IRA, taxable
Replies: 21
Views: 1697

Re: Fund placement across 401(k), Roth IRA, taxable

Just one last question: Is it typically advisable to adjust the 401(k) and taxable balances by 1-marginal tax rate? If I do, then the allocations suggested above will leave me a bit bond heavy and it may be worth having a bit less bonds and a bit more stocks. If I do the tax-adjusted allocation, it ...
by Triple digit golfer
Wed Dec 17, 2014 10:37 am
 
Forum: Investing - Help with Personal Investments
Topic: Fund placement across 401(k), Roth IRA, taxable
Replies: 21
Views: 1697

Re: Fund placement across 401(k), Roth IRA, taxable

OP, this is one of my favorite Wiki articles, addressing this very question: http://www.bogleheads.org/wiki/Principles_of_tax-efficient_fund_placement Thanks. I see that it says in tax advantaged accounts fund placement doesn't matter much, so I guess the issue with bonds in the Roth isn't as big a...
by Triple digit golfer
Mon Dec 15, 2014 9:40 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fund placement across 401(k), Roth IRA, taxable
Replies: 21
Views: 1697

Re: Fund placement across 401(k), Roth IRA, taxable

There should not be significant tax savings because these stock funds are very tax efficient. By holding international in taxable you can also benefit from the foreign tax credit . I placed international there because it worked better with your new contributions that placing US stocks there. Either...
by Triple digit golfer
Mon Dec 15, 2014 9:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fund placement across 401(k), Roth IRA, taxable
Replies: 21
Views: 1697

Re: Fund placement across 401(k), Roth IRA, taxable

I don't like using so much of the high cost bond fund. Bonds have lower returns that will be eaten up by the high costs. You can use it for a small amount of money but I really wouldn't use it for all the bond holdings. Laura Hi Laura, and thanks very much. I like Option 1, but is Option 2 more tax...
by Triple digit golfer
Mon Dec 15, 2014 8:28 am
 
Forum: Investing - Help with Personal Investments
Topic: Fund placement across 401(k), Roth IRA, taxable
Replies: 21
Views: 1697

Re: Fund placement across 401(k), Roth IRA, taxable

Thank you, Laura! So bonds in the Roth is acceptable and total portfolio cost is still the number one consideration? What do you think of my idea a few posts ago? It uses the bond fund but still results in a total portfolio expense ratio the same as DSInvestor's idea. I have used amounts high enough...
by Triple digit golfer
Sun Dec 14, 2014 10:34 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fund placement across 401(k), Roth IRA, taxable
Replies: 21
Views: 1697

Re: Fund placement across 401(k), Roth IRA, taxable

DSInvestor, I like the look of that. Just for my understanding on your reasoning: If I used the bond fund in the 401(k) at 0.93%, I'd have to remove some Wilshire 5000 at 0.85%. However, in taxable or Roth, if I used Total Stock Market admiral shares at 0.05%, it would be replacing funds with ERs of...
by Triple digit golfer
Sun Dec 14, 2014 8:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fund placement across 401(k), Roth IRA, taxable
Replies: 21
Views: 1697

Re: Fund placement across 401(k), Roth IRA, taxable

What do you currently have in your taxable account? We would not want to change current holdings unless absolutely necessary. Laura Nothing invested yet. It's sitting in savings waiting to be invested. Sorry if that was misleading. I had a large bonus and salary increase earlier this year allowing ...
by Triple digit golfer
Sun Dec 14, 2014 7:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fund placement across 401(k), Roth IRA, taxable
Replies: 21
Views: 1697

Re: Fund placement across 401(k), Roth IRA, taxable

Laura wrote:Are you really aiming for 70% of stocks in international or is that a typo?

Laura


Whoops, that's a typo. I am aiming for 30% in international stocks.

Any advice, Laura? Thanks!
by Triple digit golfer
Sun Dec 14, 2014 6:07 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fund placement across 401(k), Roth IRA, taxable
Replies: 21
Views: 1697

Re: Fund placement across 401(k), Roth IRA, taxable

DSInvestor, Thanks for your reply. I had considered using intermediate-term tax exempt. However, I feel like I may be missing out on some diversification on the bond side. It is true that if I use that fund then I don't have to use the bond fund with 0.93% ER in my 401(k), but then I'm using the sto...
by Triple digit golfer
Sun Dec 14, 2014 2:35 pm
 
Forum: Investing - Help with Personal Investments
Topic: Fund placement across 401(k), Roth IRA, taxable
Replies: 21
Views: 1697

Fund placement across 401(k), Roth IRA, taxable

Hi everybody, Thanks to some good advice from retiredjg, Laura, and others, I am just about all set on tweaking my allocation going forward. The reason for the tweak is that my company recently finalized some new 401(k) offerings, including some last-minute changes that I was able to get pushed thro...
by Triple digit golfer
Sun Dec 14, 2014 11:15 am
 
Forum: Investing - Help with Personal Investments
Topic: Fund placement across 401(k), Roth IRA, taxable
Replies: 21
Views: 1697

Re: 'Ignore John Bogle and dump your S&P 500 index fund" Art

The author of that article is comparing apples to oranges. Just as he may feel that the 500 index in its cap-weight is arbitrary, so too is his choosing of 500 stocks in equal weight. As nisiprius said, why not hold ALL stocks at equal weight? Or better yet, how about all world stocks? Even better, ...
by Triple digit golfer
Fri Dec 12, 2014 7:50 am
 
Forum: Investing - Theory, News & General
Topic: 'Ignore John Bogle and dump your S&P 500 index fund" Article
Replies: 16
Views: 3250

Re: Placing part of emergency fund in 20/80

Bumping this up hoping for some confirmation that putting 20% in TSM and 80% in Intermediate Term Treasuries is a decent option for a second tier emergency fund.

Also hoping that my plan for purchasing makes sense, in terms of tax-efficiency.
by Triple digit golfer
Tue Dec 09, 2014 10:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Placing part of emergency fund in 20/80
Replies: 2
Views: 620

Placing part of emergency fund in 20/80

I am considering placing part of my emergency fund ($15k) into a combination of 20% Total Stock Market and 80% Intermediate Term Treasuries. Current holdings before doing this are $197k, following a 80/20 stock/bond and 70/30 domestic/international. 401(k): S&P 500 $98k S&P 400 $16k Blackroc...
by Triple digit golfer
Mon Dec 08, 2014 1:33 pm
 
Forum: Investing - Help with Personal Investments
Topic: Placing part of emergency fund in 20/80
Replies: 2
Views: 620

Re: How do brokerage accounts work?

I was hoping it'd be just $7 once and not for each stock. For that reason I probably won't do it at all.
by Triple digit golfer
Sun Dec 07, 2014 2:51 pm
 
Forum: Investing - Help with Personal Investments
Topic: How do brokerage accounts work?
Replies: 28
Views: 1505

Re: How do brokerage accounts work?

I simply want to take $1,000 or so and have something to root for other than the 5-8 Chicago Bears. It'd be fun. From a packers fan, I understand. But in that very sentence you proved the speculator point - have fun and watch them! :sharebeer Best QB to play the game up there. He's unbelievable.
by Triple digit golfer
Sun Dec 07, 2014 10:24 am
 
Forum: Investing - Help with Personal Investments
Topic: How do brokerage accounts work?
Replies: 28
Views: 1505

Re: How do brokerage accounts work?

livesoft wrote:Are you sure you don't want to spend that $1,000 on toiletries? :)

I suppose those stocks you want to purchase could end up in the toilet though.


You have an incredible memory, livesoft. ;-)
by Triple digit golfer
Sun Dec 07, 2014 10:13 am
 
Forum: Investing - Help with Personal Investments
Topic: How do brokerage accounts work?
Replies: 28
Views: 1505

Re: How do brokerage accounts work?

I understand all of that. I'd like to put $1k in and if I lose it, I lose it. I'm going to buy and hold. I was going to do a "Dogs of the Dow" strategy or pick the ten lowest P/E ratios in the S&P 500. I don't play the lottery or go to casinos or have any other expensive vices like al...
by Triple digit golfer
Sun Dec 07, 2014 10:08 am
 
Forum: Investing - Help with Personal Investments
Topic: How do brokerage accounts work?
Replies: 28
Views: 1505

Re: How do brokerage accounts work?

I understand all of that. I'd like to put $1k in and if I lose it, I lose it. I'm going to buy and hold. I was going to do a "Dogs of the Dow" strategy or pick the ten lowest P/E ratios in the S&P 500. I don't play the lottery or go to casinos or have any other expensive vices like alc...
by Triple digit golfer
Sun Dec 07, 2014 9:34 am
 
Forum: Investing - Help with Personal Investments
Topic: How do brokerage accounts work?
Replies: 28
Views: 1505

How do brokerage accounts work?

I'd like to take about $1,000 of my retirement portfolio and put $100 each in the stock of ten different U.S. corporations. This will be the only money outside of index funds in my retirement portfolio. I plan to buy and hold and not do any additional trading. I see that Vanguard (and many others) c...
by Triple digit golfer
Sun Dec 07, 2014 9:17 am
 
Forum: Investing - Help with Personal Investments
Topic: How do brokerage accounts work?
Replies: 28
Views: 1505

Re: to rebalance or not to rebalance

If you're ok with a higher stock allocation and not rebalancing, how come you didn't start with the higher percentage in stocks from the beginning? Why would you be OK with a higher stock allocation AFTER they increase in price but not when they're cheaper? Things to consider before you make a decis...
by Triple digit golfer
Sat Dec 06, 2014 3:17 pm
 
Forum: Investing - Theory, News & General
Topic: to rebalance or not to rebalance
Replies: 63
Views: 3315

Re: Thank you, Taylor...

I am 29, a long way from retirement, with about $200k in retirement assets, but because of a few things (in no particular order: my career success, frugality, and this forum and all its terrific posters), I am on my way to being very well-off. I frequently come on this forum specifically to search f...
by Triple digit golfer
Sat Dec 06, 2014 9:42 am
 
Forum: Local Chapters and Bogleheads Community
Topic: Thank you, Taylor...
Replies: 15
Views: 2171

Re: Best for taxable account?

Thanks to both of you!
by Triple digit golfer
Thu Dec 04, 2014 6:24 pm
 
Forum: Investing - Help with Personal Investments
Topic: Best for taxable account?
Replies: 4
Views: 552

Re: Memory foam mattresses - any insight?

OP here.

I have had the mattress that I linked in my first post for four months now. We love it. It's firm but very supportive and comfortable. Highly recommended.
by Triple digit golfer
Thu Dec 04, 2014 5:13 pm
 
Forum: Personal Consumer Issues
Topic: Memory foam mattresses - any insight?
Replies: 67
Views: 6606

Best for taxable account?

Which fund is best for a taxable account? Vanguard Total Stock Market Index (VTSMX) Vanguard Total International Stock Index (VGTSX) Vanguard FTSE All-World ex-US Index (VFWIX) I have flexibility in my portfolio to hold any of the three in a taxable account, while keeping my AA at 80/20 stock/bond a...
by Triple digit golfer
Thu Dec 04, 2014 5:10 pm
 
Forum: Investing - Help with Personal Investments
Topic: Best for taxable account?
Replies: 4
Views: 552

Re: Emergency Funds

Investors need precisely two things: a checking account and a portfolio. The checking account should hold enough money to make paying bills convenient. Everything else can be invested with the rest of the portfolio. The reason that emergency funds (and other buckets of money) are attractive to inve...
by Triple digit golfer
Tue Dec 02, 2014 4:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Emergency Funds
Replies: 33
Views: 3379

Re: Re:

I could MAYBE see celebrating a first-time home purchase or paying off a car or mortgage loan. I celebrated paying off my first car... I celebrated paying off my student loans... I'm sure we'll celebrate the day we pay off our house, the day we get our first million, and the day we hit our final &q...
by Triple digit golfer
Mon Dec 01, 2014 7:52 pm
 
Forum: Personal Finance (Not Investing)
Topic: Do you celebrate financial milestones?
Replies: 105
Views: 12084

Re: Approximating TSM with Fidelity Spartan index funds

CAP_theorem wrote:
Triple digit golfer wrote:http://www.bogleheads.org/wiki/Approximating_total_stock_market

Thanks there is a link to that in my original post.


Sorry, on mobile and didn't see it.

I'd do 82 11 7 or something close and call it a day. It won't make a huge difference if you're a few points off among these three funds.
by Triple digit golfer
Mon Dec 01, 2014 6:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Approximating TSM with Fidelity Spartan index funds
Replies: 6
Views: 602

Re: Torn between paying down mortgage or investing

I'm noticing you mention the fiancée is "new," and that it will be 2 1/2 years before you and the fiancée purchase a house together. You don't mention whether a wedding date is set. I'm also not seeing any of the fiancée's financial information. I assume "frugal" means he is res...
by Triple digit golfer
Sun Nov 30, 2014 6:38 pm
 
Forum: Investing - Help with Personal Investments
Topic: Torn between paying down mortgage or investing
Replies: 5
Views: 662

Torn between paying down mortgage or investing

My frugal new fiance and I are planning on selling my townhouse and buying a house together, with a target date of summer 2017. I have extra money (around $30k) set aside for whatever extra is needed for a down payment. I'm assuming that our new house will be $250k and that we'll walk away from the ...
by Triple digit golfer
Sun Nov 30, 2014 5:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Torn between paying down mortgage or investing
Replies: 5
Views: 662

Re: How To Invest Your Emergency Fund?

Was hoping to get folks' thoughts on this: What is the best way to set up a 20/80 desired allocation for part of my emergency fund in a taxable account? Vanguard LifeStrategy Income comes to mind. 1. Would it be more tax-efficient to use two separate accounts (Total Stock and Total Bond)? 2. If the ...
by Triple digit golfer
Sat Nov 29, 2014 4:30 pm
 
Forum: Investing - Help with Personal Investments
Topic: How To Invest Your Emergency Fund?
Replies: 97
Views: 14244

Re: Eat on $4 per day. Free online cookbook.

CFM300 wrote:I was going to make a smart-ass remark just for lulz, like: "Does this guy even lift? No way he's gonna get swole on that diet!"


U aware?!
by Triple digit golfer
Wed Nov 26, 2014 10:08 am
 
Forum: Personal Consumer Issues
Topic: Eat on $4 per day. Free online cookbook.
Replies: 12
Views: 1501

Re: Thank You

Amen to that. This board and its many awesome members have helped me tremendously. It's incredible how kind the people are and how they are so willing to help. Not just smart investors, great people all around.

Happy Thanksgiving to all!
by Triple digit golfer
Tue Nov 25, 2014 5:00 pm
 
Forum: Investing - Help with Personal Investments
Topic: Thank You
Replies: 3
Views: 675

Re: What percent "Boglehead" are you?

Copying nisiprius' format: 1 Develop a workable plan - 8 - I am currently investing 25% of my income for retirement and never plan on dipping below 15%. If I ever have kids I assume it may dip. Given my uncertainty about exactly how much I'll invest once there are kids in the picture, I'll give myse...
by Triple digit golfer
Sun Nov 23, 2014 7:47 pm
 
Forum: Investing - Theory, News & General
Topic: What percent "Boglehead" are you?
Replies: 120
Views: 7856

Re: Adding taxable investments to retirement portfolio

As for placing cash needs in a tax-advantaged account, my taxable account will be about $95k. Does that change things? Would it make a large difference if I exchanged some S&P 500 in my 401(k) for a money market account, and then used some of my liquid savings to buy the S&P 500 index in ta...
by Triple digit golfer
Wed Nov 19, 2014 5:03 pm
 
Forum: Investing - Help with Personal Investments
Topic: Adding taxable investments to retirement portfolio
Replies: 12
Views: 1388

Re: Adding taxable investments to retirement portfolio

rkhusky wrote:Just for completeness, what is the lowest cost option for total international in your 401K and its ER?


It's an EAFE index (doesn't include emerging markets) and I believe it is right around 0.95%.
by Triple digit golfer
Wed Nov 19, 2014 2:59 pm
 
Forum: Investing - Help with Personal Investments
Topic: Adding taxable investments to retirement portfolio
Replies: 12
Views: 1388

Re: Adding taxable investments to retirement portfolio

Thanks for the replies, everybody. I would suggest A or a modification of A. The modification would be to hold both Total Stock and Total International in taxable, adjusting the rest of your portfolio as needed. As I understand Grabiner, one of the better numbers people around here, the Total Stock ...
by Triple digit golfer
Wed Nov 19, 2014 1:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Adding taxable investments to retirement portfolio
Replies: 12
Views: 1388

Re: Adding taxable investments to retirement portfolio

Another consideration: Should I consider holding my cash/MM in my 401(k) rather than taxable and hold more stock index funds in my taxable account? Is there a sizeable benefit to doing this? In the case that I need the money, I simply sell taxable stock index and then in my 401(k) I exchange the ca...
by Triple digit golfer
Wed Nov 19, 2014 12:36 pm
 
Forum: Investing - Help with Personal Investments
Topic: Adding taxable investments to retirement portfolio
Replies: 12
Views: 1388

Re: Adding taxable investments to retirement portfolio

Not an expert on this but would humbly consider putting 30K in TSM in taxable and since the ER in your 401K is so much higher than 0.05%. TSM is also very tax efficient as well. TISM is also tax efficient but not quite as tax efficient as TSM although there is the foreign tax credit. JMO... but hop...
by Triple digit golfer
Wed Nov 19, 2014 11:56 am
 
Forum: Investing - Help with Personal Investments
Topic: Adding taxable investments to retirement portfolio
Replies: 12
Views: 1388

Adding taxable investments to retirement portfolio

If you don't want to get into the details of why I'm adding $30k in taxable investments to my retirement portfolio , read below the line about 2/3 of the way down. General gist is that I am adding $30k in taxable to my otherwise tax-advantaged (401k and Roth IRA) portfolio. I have $95k sitting in s...
by Triple digit golfer
Wed Nov 19, 2014 9:48 am
 
Forum: Investing - Help with Personal Investments
Topic: Adding taxable investments to retirement portfolio
Replies: 12
Views: 1388

Re: Fund placement and expenses

bengal22 wrote:why not option C - both funds at .2%. A higher expense ratio does not give you a better return.


I understand that and of course in a perfect world Option C would be ideal. I'm trying to just understand the theory behind it.
by Triple digit golfer
Wed Nov 19, 2014 8:51 am
 
Forum: Investing - Theory, News & General
Topic: Fund placement and expenses
Replies: 7
Views: 546

Fund placement and expenses

All else equal, which is the better option? Option A: Stocks in a fund with a 1.00% ER Bonds in a fund with a 0.20% ER Option B: Stocks in a fund with a 0.20% ER Bonds in a fund with a 1.00% ER Is the way to figure this simply to take total holdings as a percentage of total portfolio? For example, i...
by Triple digit golfer
Wed Nov 19, 2014 8:41 am
 
Forum: Investing - Theory, News & General
Topic: Fund placement and expenses
Replies: 7
Views: 546

Re: Emergency and earmarked funds - investing ideas

Noobvestor: The LS income dropped about 11% in 2008 and wasn't down in any other year. Still, I see your point and it may be a bit too risky. I'm hestitant to invest in I Bonds. They are offering 1.48%, not much higher than some CDs. BolderBoy: I was saying that a portfolio with 20% stocks diversifi...
by Triple digit golfer
Tue Nov 18, 2014 8:55 am
 
Forum: Investing - Help with Personal Investments
Topic: Emergency and earmarked funds - investing ideas
Replies: 8
Views: 1451

Emergency and earmarked funds - investing ideas

I have about $95k in cash that I do not consider part of my retirement portfolio. This is money I plan on using in the semi-near future. I am tired of earning 1% in savings and I'd to take a bit of additional risk on some of my cash. Here's how I divy it up, at least in my head: $24k emergency fund ...
by Triple digit golfer
Mon Nov 17, 2014 9:26 pm
 
Forum: Investing - Help with Personal Investments
Topic: Emergency and earmarked funds - investing ideas
Replies: 8
Views: 1451

Re: Options for girlfriend with bad 403b and no matching

She's in the 15% bracket. The only decent fund that I see is a 500 index with a 1.08% ER. The rest are actively managed with expense ratios in the mid to high 1s. Both of those facts make a strong argument for Roth IRA in my opinion. It might be worthwhile to be sure she will still be in the 15% br...
by Triple digit golfer
Sun Nov 16, 2014 4:55 pm
 
Forum: Investing - Help with Personal Investments
Topic: Options for girlfriend with bad 403b and no matching
Replies: 8
Views: 413

Re: Options for girlfriend with bad 403b and no matching

She's in the 15% bracket.

The only decent fund that I see is a 500 index with a 1.08% ER. The rest are actively managed with expense ratios in the mid to high 1s.
by Triple digit golfer
Sun Nov 16, 2014 4:37 pm
 
Forum: Investing - Help with Personal Investments
Topic: Options for girlfriend with bad 403b and no matching
Replies: 8
Views: 413

Options for girlfriend with bad 403b and no matching

She contributes 15% of her salary, which is about $7,000, to a 403b with high cost, actively managed funds. Any reason for her not to instead max out a Roth IRA and cut down that 403b contribution to close to nothing? Considering that a Roth is after tax, I'm considering recommending that she contri...
by Triple digit golfer
Sun Nov 16, 2014 4:28 pm
 
Forum: Investing - Help with Personal Investments
Topic: Options for girlfriend with bad 403b and no matching
Replies: 8
Views: 413

Re: Portfolio review in light of new (better) 401(k) choices

This looks like a good and simple plan. Just be aware that you will be slightly under your target international allocation but that isn't a big problem. All new contributions to the roth would go into the Total Intl fund. I would go for it. Laura Thanks, Laura. Just to clarify, when you say I'll be...
by Triple digit golfer
Sat Nov 15, 2014 5:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio review in light of new (better) 401(k) choices
Replies: 2
Views: 212

Portfolio review in light of new (better) 401(k) choices

As a new trustee on my company's 401(k) plan, I have made some changes in our available funds! I was able to dump four expensive, actively managed funds in favor of index funds that will be available beginning December 1! A little further below I will only list the index options in my 401(k), as the...
by Triple digit golfer
Sat Nov 15, 2014 4:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Portfolio review in light of new (better) 401(k) choices
Replies: 2
Views: 212
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