AA for a 72 YO Male

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AA for a 72 YO Male

Postby perth » Tue Jan 29, 2013 6:35 pm

My mother died about 18 months ago and I've consolidated multiple accounts for my father into the following:

VG Brokerage Acct:
VWAHX VG High-Yield Tax Exempt Fund $15K
VMSXX VG Tax Exempt MM $ 4K
VWENX VG Wellington Admiral $65K
Local Dividend Paying Utility Stock $28K (He won't sell for sentimental reasons, we've reduced this holding greatly)
TOTAL $112K

VG Traditional IRA:
VWIAX VG Wellesly Admiral $80K
VMMXX VG Prime MM $4K (To pay out his annual RMD)
TOTAL $84K

My Dad is 72, in good health, has a no debt and a DB & SS that more than cover all his monthly expenses. Thoughts on this AA?
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Re: AA for a 72 YO Male

Postby NYBoglehead » Tue Jan 29, 2013 7:19 pm

Sorry to hear about your mom. Glad to hear Dad is in good health, that AA looks good to me. If his DB pension and SS cover his monthly expenses everything on top is gravy.
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Re: AA for a 72 YO Male

Postby sometimesinvestor » Wed Jan 30, 2013 12:44 am

I suspect a money market account at an internet bank like Ally or Discover will produce a better after tax return than the vanguard tax exempt money market fund.Is that just an account that has been there a long time (prior to 2008 it might have been worthwhile)?
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Re: AA for a 72 YO Male

Postby perth » Wed Jan 30, 2013 8:28 pm

sometimesinvestor wrote:I suspect a money market account at an internet bank like Ally or Discover will produce a better after tax return than the vanguard tax exempt money market fund.Is that just an account that has been there a long time (prior to 2008 it might have been worthwhile)?


I don't understand how a taxable .90% savings acct at Ally Bank would produce more income than VWAHX. Can you elaborate? He is currently in a 25% Federal Tax and 5.25% State tax.
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Re: AA for a 72 YO Male

Postby Dale_G » Wed Jan 30, 2013 9:06 pm

perth wrote:
sometimesinvestor wrote:I suspect a money market account at an internet bank like Ally or Discover will produce a better after tax return than the vanguard tax exempt money market fund.Is that just an account that has been there a long time (prior to 2008 it might have been worthwhile)?


I don't understand how a taxable .90% savings acct at Ally Bank would produce more income than VWAHX. Can you elaborate? He is currently in a 25% Federal Tax and 5.25% State tax.


Perth, sometimesinvestor was referring to the $ 4k in VMSXX VG Tax Exempt Money Market fund. But for roughly $36 a year, it probably isn't worth the hassle.

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