Search found 52 matches

by BogleAlltheWay
Fri May 26, 2017 8:59 am
Forum: Personal Finance (Not Investing)
Topic: Limited Purpose FSA
Replies: 0
Views: 66

Limited Purpose FSA

Hi all,
I recently found out that I am eligible for a HSA. Unfortunately, I have a small FSA for 2017 that I have not used yet.
Is it possible to make my 2017 FSA "limited purpose" and therefore allowing me to get a HSA?
by BogleAlltheWay
Thu May 25, 2017 10:41 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Re: Target Date Funds in Taxable Account

Thank you for all help. :thumbsup :thumbsup :thumbsup
by BogleAlltheWay
Thu May 25, 2017 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: When does Saving become missing out on life?
Replies: 46
Views: 3933

Re: When does Saving become missing out on life?

once you turn down (or ignore) enough invitations your family/(former) friends will simply stop sending them. After that it doesn't matter if you are a multi-millionaire, they still won't socialize with you. It is ironic how many people isolate themselves saving money so they can spend more time wi...
by BogleAlltheWay
Thu May 25, 2017 5:46 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Re: Target Date Funds in Taxable Account

If you kept the money in the 401(k) forever, this does say that munis in taxable would outperform taxable bonds in the 401(k) at current yields. However, you will leave this employer eventually, and be able to roll the 401(k) into an IRA, keeping the tax deferral while getting rid of the extra expe...
by BogleAlltheWay
Thu May 25, 2017 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: When does Saving become missing out on life?
Replies: 46
Views: 3933

Re: When does Saving become missing out on life?

Life is about balance. You have to first figure out what is most important to you and your goals. How important are the events with family and friends? How much money do you need/want in retirement? Do you want to retire early? IMO as long as you are saving enough for retirement, you should not let ...
by BogleAlltheWay
Wed May 24, 2017 4:21 pm
Forum: Investing - Help with Personal Investments
Topic: Tax Efficientcy Rankings
Replies: 2
Views: 299

Tax Efficientcy Rankings

Hi all, Looking at Table 1 on https://www.bogleheads.org/wiki/Tax-efficient_fund_placement it lists Small-cap ETF and Small-cap index (no ETF), Does this mean that Vanguard small cap index fund (with an ETF class), count as Small-cap ETF? If so, is this the reason that Vanguard funds are the more ta...
by BogleAlltheWay
Wed May 24, 2017 11:56 am
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Re: Target Date Funds in Taxable Account

BogleAlltheWay wrote: Is your recommendation for Bonds in taxable only if I have no room to put that money in 401k? No. Bonds are better in tax-deferred accounts than in taxable accounts, if all else is equal. But since your 401(k) has an expensive bond fund, it is better for you to put bonds in tax...
by BogleAlltheWay
Tue May 23, 2017 6:12 pm
Forum: Investing - Help with Personal Investments
Topic: Help with 401k Fund options.
Replies: 5
Views: 316

Re: Help with 401k Fund options.

The most important thing I would do is read, learn, and ask questions. I just started looking into what I was invested in. Every situation is different but a good rule of thumb is to look at various Target funds for your retirement date and allocate similar to that. You have great options in your 40...
by BogleAlltheWay
Tue May 23, 2017 4:11 pm
Forum: Investing - Help with Personal Investments
Topic: 21 yr old sons Roth IRA
Replies: 23
Views: 1373

Re: 21 yr old sons Roth IRA

You really can't go wrong with Target Dated fund. You can pretty much set it and forget.

Once he has enough money you can save a few basis points a year by buying the funds separately in admiral shares, but the lower cost comes with more work and opportunity to make mistakes.
by BogleAlltheWay
Tue May 23, 2017 2:03 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Re: Target Date Funds in Taxable Account

Bonds are probably better in an IRA than in a taxable account, because a bond fund loses more to taxes than a stock fund (or, if it is a muni fund, you get a lower yield than on taxable bonds of comparable risk). But for you, they are probably better in a taxable account than in the 401(k), because...
by BogleAlltheWay
Mon May 22, 2017 7:01 pm
Forum: Investing - Help with Personal Investments
Topic: Roth IRA with Vanguard Now what
Replies: 12
Views: 1067

Re: Roth IRA with Vanguard Now what

If you are saving for retirement it would be wise to take advantage of the 401k. The benefit of target funds is that they automatically get more conservative as you get closer to retirement. The target fund for your year is 90% stocks and 10% bonds. You invest in both a target fund and something els...
by BogleAlltheWay
Mon May 22, 2017 4:28 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie investing questions
Replies: 20
Views: 1429

Re: Newbie investing questions

You are correct, it is often best to look at all accounts of a married couple together together as a single unified whole, rather than consider each separately. She should certainly contribute enough to her 401k to get the full employer match each year. What she should do beyond that depends a lot ...
by BogleAlltheWay
Mon May 22, 2017 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: HSA and FSA at the same time
Replies: 8
Views: 704

Re: HSA and FSA at the same time

I have spoken to them. They don't offer an HSA directly through the company. They were unaware that I could open up one on my own and are unsure of the eligibility or exactly how it works. They are going research. Looks like HR everywhere are cut of the same cloth. One would've assumed that they wo...
by BogleAlltheWay
Mon May 22, 2017 12:14 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie investing questions
Replies: 20
Views: 1429

Re: Newbie investing questions

1) Contribute to the 401k enough to get the full employer match (the match is like free money, your best possible investment); 2) Contribute to a Health Savings Account (HSA) (if suitable as a way to finance your medical needs); 3) Contribute the maximum to an IRA, traditional or Roth, depending on...
by BogleAlltheWay
Mon May 22, 2017 10:01 am
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Re: Target Date Funds in Taxable Account

A. 401(k) all in bonds, IRA all in stock B. 401(k) all in bonds, $1397 of IRA in bonds and $8603 in stock C. 401(k) all in stock, IRA all in bonds D. 401(k) all in stock, $8603 of IRA in bonds and $1397 in stock Lets assume 3% for bonds and 7% for stocks for 30 years A: 20,883.78 + 76,122.55 = 9700...
by BogleAlltheWay
Sun May 21, 2017 9:16 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Re: Target Date Funds in Taxable Account

Yes if the stock market goes up, and no if it goes down. Isn't it better to have the stocks in the traditional IRA considering they are more likely to rise? Therefore, for a two-year investment, the portfolios are no longer equivalent. Now, $10,000 in the 401(k) is equivalent to $9900 in the tradit...
by BogleAlltheWay
Sun May 21, 2017 1:38 pm
Forum: Investing - Help with Personal Investments
Topic: HSA and FSA at the same time
Replies: 8
Views: 704

Re: HSA and FSA at the same time

I have spoken to them. They don't offer an HSA directly through the company. They were unaware that I could open up one on my own and are unsure of the eligibility or exactly how it works. They are going research.
by BogleAlltheWay
Sun May 21, 2017 12:39 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Re: Target Date Funds in Taxable Account

Let's consider this case(maybe this doesn't apply): 10k in 401k 10K in traditonal IRA Bonds in 401k go up to 11K and stocks in IRA go up to 15K after 1 year : I will have 26K - $55 of fee(11k *.5%) Bonds in IRA go up to 11K and stocks in 401 go up to 15K after 1 year : : I will have 26K - $75 of fe...
by BogleAlltheWay
Sun May 21, 2017 11:27 am
Forum: Investing - Help with Personal Investments
Topic: HSA and FSA at the same time
Replies: 8
Views: 704

Re: HSA and FSA at the same time

Thanks. I was afraid of that. Is it possible to reclassify the FSA as limited purpose for this year? I have not used any of the funds. My FSA is only like $300
by BogleAlltheWay
Sun May 21, 2017 2:42 am
Forum: Investing - Help with Personal Investments
Topic: HSA and FSA at the same time
Replies: 8
Views: 704

HSA and FSA at the same time

Hi all ,

I recently found out I am eligible for a HSA, but I already contributed to my FSA for 2017. Apparently, you cannot do both in the same year.
Does than mean I have to wait to 2018 to open of HSA or can I open one for 2017, but only take the tax deduction for one?
by BogleAlltheWay
Sun May 21, 2017 1:26 am
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Re: Target Date Funds in Taxable Account

I forgot to add another caveat. My 401k charges me a .5% allocation fee per year. So by keeping the higher growth stock funds, I will have to pay more allocation fees. That is a percentage cost, so you should just treat it as a higher expense ratio. In the 401(k), you will pay 0.59% on stocks and 0...
by BogleAlltheWay
Sat May 20, 2017 12:13 am
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Re: Target Date Funds in Taxable Account

I forgot to add another caveat. My 401k charges me a .5% allocation fee per year. So by keeping the higher growth stock funds, I will have to pay more allocation fees. That is a percentage cost, so you should just treat it as a higher expense ratio. In the 401(k), you will pay 0.59% on stocks and 0...
by BogleAlltheWay
Fri May 19, 2017 1:41 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie investing questions
Replies: 20
Views: 1429

Re: Newbie investing questions

Thanks for your reply. Taxable Account: 45% 60K 401k: 40% 50K Roth IRA: 15% 20K Contributions: 401K : 8-10K Match: $750 Roth IRA: (max each year) As much as I can from salary and the rest take out of taxable That would mean perhaps $8-10k drawn annually from your taxable account to help fully fund t...
by BogleAlltheWay
Fri May 19, 2017 11:02 am
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Re: Target Date Funds in Taxable Account

Funny I am from NY and in 25% bracket,so would it better for me to buy a bond fund in my tax deferred (Federated Total Return Bond Fund FTRBX ER .37%) or buy a tax-exempt NY Muni fund such as the Vanguard new york tax exempt (.09% ER) in taxable? Since the bond funds in your 401(k) are more expensi...
by BogleAlltheWay
Thu May 18, 2017 8:01 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie investing questions
Replies: 20
Views: 1429

Re: Newbie investing questions

I was concerned about capital gains with rebalancing. I think you are right in that I can rebalance international in my future Roth contributions. Thanks for the link. No one knows where the market is going, but does it make sense to have international in Roth at the moment considering that the US s...
by BogleAlltheWay
Thu May 18, 2017 1:53 pm
Forum: Investing - Theory, News & General
Topic: If everybody indexed, the only word you could use is chaos, catastrophe
Replies: 48
Views: 6210

Re: If everybody indexed, the only word you could use is chaos, catastrophe

If everyone index how could a stock ever rise or fall? For example if Apple went bankrupt, would the stock price not move at all?
by BogleAlltheWay
Thu May 18, 2017 12:40 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie investing questions
Replies: 20
Views: 1429

Re: Newbie investing questions

Good point. I have read that page, but it just looked at the order, which as international as less tax efficient, but I missed that they out the international into taxable because of the foreign tax credit. Does it affect rebalancing that I have no internation funds in tax sheletered? FSA doesn't ro...
by BogleAlltheWay
Thu May 18, 2017 11:31 am
Forum: Investing - Help with Personal Investments
Topic: Newbie investing questions
Replies: 20
Views: 1429

Re: Newbie investing questions

Thanks ICM On top the allocation fee the match is low: 20% up to 5% of salary. My taxable account only has about 3k of capital gains. My adviser had me sell in 2015 to get into a better fund and I paid alot of taxes. I am in the 25% even if I maxed out my 401k. I also have the option of buying NY st...
by BogleAlltheWay
Thu May 18, 2017 8:36 am
Forum: Investing - Help with Personal Investments
Topic: Justification for holding Emerging Markets?
Replies: 67
Views: 2967

Re: Justification for holding Emerging Markets?

I have heard arguments like those from John Bogle, that you really don't need international funds because many of the largest US companies get a large percentage of their revenue from overseas. I think he said if you really wanted international you could do up to 20%. Other people have said that hom...
by BogleAlltheWay
Thu May 18, 2017 8:28 am
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Re: Target Date Funds in Taxable Account

From what I am gathering, the main issue with target funds in taxable, is that the bonds are taxable. The problem isn't that the bonds are taxable (taxable bonds are fine in a taxable account in the 25% or lower bracket), but that in most tax brackets, it is better to hold bonds in a tax-deferred a...
by BogleAlltheWay
Thu May 18, 2017 8:13 am
Forum: Investing - Help with Personal Investments
Topic: Asset allocation for 34 years old
Replies: 8
Views: 669

Re: Asset allocation for 34 years old

A couple of questions for you:

why you don't hold any large domestic or international companies ?
Why so many bonds?
by BogleAlltheWay
Wed May 17, 2017 6:38 pm
Forum: Investing - Help with Personal Investments
Topic: Net Expense Ratio in annual report vs Prospectus
Replies: 2
Views: 191

Net Expense Ratio in annual report vs Prospectus

The BlackRock MidCap Index Fund Institutional Shares: BRMIX has the following infomation on Morningstar: Net Expense Ratio: Annual Report 07/31/2016 0.06% Net Expense Ratio: Prospectus 11/28/2016 0.13% Am I correct in saying that the ER for 2016 was 0.06% and it is projected to be .13% in 2017? If s...
by BogleAlltheWay
Wed May 17, 2017 12:39 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Re: Target Date Funds in Taxable Account

Got it. Thanks. I plan on getting an REIT eventually as I am in the process of moving assets around.
by BogleAlltheWay
Wed May 17, 2017 12:07 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Re: Target Date Funds in Taxable Account

@NiceUnparticularMan Not using bonds?
by BogleAlltheWay
Wed May 17, 2017 11:23 am
Forum: Investing - Help with Personal Investments
Topic: What if I have enough money?
Replies: 22
Views: 4201

Re: What if I have enough money?

If you lost half or more of your stock profolio would it change things? What would you do with the extra money assuming stocks returned 7% a year? I look at it this way: If there was a heads or tails game, that I win $200 on heads and lose $100 I would play it all day. If there was a heads or tails ...
by BogleAlltheWay
Wed May 17, 2017 11:03 am
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Re: Target Date Funds in Taxable Account

Thanks. I won't have that problem. The issue for me would be moving all of my bonds into stocks if the market tanked. Only because I have 30 years till retirement.
by BogleAlltheWay
Wed May 17, 2017 9:09 am
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Re: Target Date Funds in Taxable Account

@ NiceUnparticularMan

What behavioral risks?
by BogleAlltheWay
Tue May 16, 2017 9:52 pm
Forum: Investing - Theory, News & General
Topic: Best argument you've heard against passive/for active?
Replies: 49
Views: 3949

Re: Best argument you've heard against passive/for active?

Some arguments I have heard that I am unsure to agree with: As more money flows into passive, good active managers will be able pick out bargains. When a stock(s) goes in or out of the S & P, from emerging to developed etc. Index funds are forced to buy at a premium ie. If they announce that Twi...
by BogleAlltheWay
Tue May 16, 2017 8:13 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Re: Target Date Funds in Taxable Account

I was comparing it to the admiral shares. I do think the extra cost is very reasonable. From what I have gathers it does not make sesne for me to have this is taxable.
by BogleAlltheWay
Tue May 16, 2017 7:59 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie investing questions
Replies: 20
Views: 1429

Re: Newbie investing questions

Thanks for your response. The allocation fee is what I get charged in fees each year. They take it out quarterly. My problem was I did not contribute to my 401k or more toward IRA because I didn't know better. I was planning to contribute to my 401k up to match, then Roth IRA, then attempt to max ou...
by BogleAlltheWay
Tue May 16, 2017 6:24 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie investing questions
Replies: 20
Views: 1429

Re: Newbie investing questions

@ruralavalon Thanks for the detailed reply. I really appreciate it. Sorry I left out so much info. I edited my post. I am eager to learn about saving for retirement. Where should I look to get accurate tax information? Should I just look at the after tax returns? This unBoglelike but the reason I wa...
by BogleAlltheWay
Tue May 16, 2017 3:36 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Re: Target Date Funds in Taxable Account

Thanks again. I always noticed the Target funds ER was always higher than the funds that comprised it. Now I understand now that you are paying the extra ER for the convenience of having it automated.
by BogleAlltheWay
Tue May 16, 2017 2:14 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Re: Target Date Funds in Taxable Account

From what I am gathering, the main issue with target funds in taxable, is that the bonds are taxable.

Assuming that I was able to get a target fund in a tax sheltered account, is the only benefit of the target fund that fact that it rebalances itself as opposed to having to doing it myself?
by BogleAlltheWay
Tue May 16, 2017 1:38 pm
Forum: Investing - Help with Personal Investments
Topic: Time to Execute: From Cash to Funding Asset Allocations
Replies: 8
Views: 677

Re: Time to Execute: From Cash to Funding Asset Allocations

I am relatively new to investing but these are ideas I have heard floating around: Considering the markets have always gone up, it the optimal time to invest it is always now. One such study http://content.schwab.com/web/retail/public/owners_manual/principle-act.htm Dollar cost averaging is less ris...
by BogleAlltheWay
Tue May 16, 2017 12:20 pm
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Re: Target Date Funds in Taxable Account

Thanks for the replies. @David Jay If I went the do it myself route I would re balance it a couple times a year. Would this causes more taxes than the target fund? @DSInvestor I like your idea. I am currently 33 so I do have a long time horizon. My 401k Target date fund has an ER of 1% so it makes m...
by BogleAlltheWay
Tue May 16, 2017 11:09 am
Forum: Investing - Help with Personal Investments
Topic: Target Date Funds in Taxable Account
Replies: 40
Views: 4399

Target Date Funds in Taxable Account

Hi all,

Would my capital gains taxes be more, less or the same by holding a Vanguard Target Retirement Fund versus just copying underlying allocation?

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