Search found 23 matches

by donaldson
Wed Sep 13, 2017 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds with limited tax advantaged space
Replies: 17
Views: 1568

Re: Bonds with limited tax advantaged space

Can you explain how the tax reporting works for VWSTX ? Would the $s in those funds be taxed in CA? I'm not a tax expert, but I'm pretty sure all the interest paid by a nationally diversified muni fund is subject to state taxes. Even the percentage of the fund's interest earned from CA bonds would ...
by donaldson
Wed Jun 14, 2017 6:57 pm
Forum: Investing - Help with Personal Investments
Topic: Ally Bank - Is this a safe/best place to stash some cash?
Replies: 108
Views: 21628

Re: Ally Bank - Is this a safe/best place to stash some cash?

We use Ally as our ONLY bank. Only issue is depositing cash, can only do it via getting a money order and mailing it in. I use the e-deposit on my phone about once a week, no issues at all. Really like the convenience of e-check and of using any ATM. Much better rates, convenience and service than ...
by donaldson
Wed Jun 14, 2017 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: Changing to include Emergency Fund as part of asset allocation - best way to do this?
Replies: 23
Views: 1574

Re: Changing to include Emergency Fund as part of asset allocation - best way to do this?

However, stocks are not necessarily more tax efficient than bonds in taxable. You can have I-Bonds and muni bonds in taxable and they are actually more tax efficient than stock. Plus you don't have to hold bonds in Roth to have on hand for rebalancing when you sell stock to replace your dead car. L...
by donaldson
Wed Jun 14, 2017 6:23 pm
Forum: Investing - Help with Personal Investments
Topic: Changing to include Emergency Fund as part of asset allocation - best way to do this?
Replies: 23
Views: 1574

Re: Changing to include Emergency Fund as part of asset allocation - best way to do this?

Thanks for the replies so far. Taylor's post above talks about simplifying, and for me simplifying also means treating everything (except for my short-term savings goals) as a single portfolio. I appreciate some of the discussion around bond placement in my Roth vs. SIMPLE IRA, and I will look into ...
by donaldson
Wed Jun 14, 2017 3:04 pm
Forum: Investing - Help with Personal Investments
Topic: Changing to include Emergency Fund as part of asset allocation - best way to do this?
Replies: 23
Views: 1574

Re: Changing to include Emergency Fund as part of asset allocation - best way to do this?

My SIMPLE IRA is invested in a target-date fund that is currently 80/20 (one of the only good options available), so until I leave my current job and roll it over into a traditional IRA, adding bonds there would not be an option. The funds in your SIMPLE IRA are not locked into your employer. You c...
by donaldson
Wed Jun 14, 2017 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: Changing to include Emergency Fund as part of asset allocation - best way to do this?
Replies: 23
Views: 1574

Re: Changing to include Emergency Fund as part of asset allocation - best way to do this?

What is prompting you to make this change now? It would be nice to know why you are choosing to do that - and making sure it isn't being prompted by chasing the recent returns in equities. Good questions so far. I am certainly not chasing returns. I am coming into my second year of following the Bo...
by donaldson
Wed Jun 14, 2017 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: Changing to include Emergency Fund as part of asset allocation - best way to do this?
Replies: 23
Views: 1574

Re: Changing to include Emergency Fund as part of asset allocation - best way to do this?

mhalley wrote:I do not count my ef as part of my aa. I also do not like using a Roth as part of an ef.
To clarify, I am proposing (in option 2) moving my current EF into my taxable account. If cash needs presented themselves, I would withdraw from the taxable account and use the Roth to rebalance.
by donaldson
Wed Jun 14, 2017 2:25 pm
Forum: Investing - Help with Personal Investments
Topic: Changing to include Emergency Fund as part of asset allocation - best way to do this?
Replies: 23
Views: 1574

Re: Changing to include Emergency Fund as part of asset allocation - best way to do this?

It will be interesting to see what people come up with. Sometimes I like a little bit of bonds in a Roth IRA, but I must admit that at the present time we have zero bonds in Roth IRAs. I would encourage you to have your bond allocation in your SIMPLE, so what are the options there? And to have your...
by donaldson
Wed Jun 14, 2017 2:09 pm
Forum: Investing - Help with Personal Investments
Topic: Changing to include Emergency Fund as part of asset allocation - best way to do this?
Replies: 23
Views: 1574

Changing to include Emergency Fund as part of asset allocation - best way to do this?

Hi all, I currently have 6 months of expenses in an online savings account, which up until now I had not been considering part of my asset allocation. However, if I count the emergency fund as fixed income (which I would now like to do in order to avoid mental accounting), the result is a much more ...
by donaldson
Wed May 10, 2017 1:39 pm
Forum: Investing - Theory, News & General
Topic: Bitcoin Purchase
Replies: 99
Views: 11737

Re: Bitcoin Purchase

Just to add a data point to this thread: I made a very small purchase of Bitcoin in early February that has since increased by 80 percent. Regardless of what happens, I am planning not to sell anything until at least a year has passed so that it can be taxed as a long term capital gain (or use the l...
by donaldson
Tue Apr 18, 2017 12:52 pm
Forum: Investing - Theory, News & General
Topic: Those that hold international equities at market-cap weight: what is your method?
Replies: 24
Views: 2904

Re: Those that hold international equities at market-cap weight: what is your method?

Thanks for the replies so far. I will attempt to sum up some of the responses for the benefit of anyone who has a similar question later: Do you use a single index such as Vanguard Total World Stock Index (VTWSX)? Some have chosen to do this, and often use ETFs such as VT to keep expense ratios down...
by donaldson
Mon Apr 17, 2017 5:11 pm
Forum: Personal Consumer Issues
Topic: USAA 2.5% Cash Back Credit Card
Replies: 192
Views: 35141

Re: USAA 2.5% Cash Back Credit Card

Interestingly enough, as of the time I am writing this, there is no mention of tax payments on the Limitless Visa terms and conditions: Qualifying Purchases do not include: Balance Transfers, Cash Advances (including Convenience Checks), ATM Cash Disbursements, Money Transfers, Truck Stop Transactio...
by donaldson
Mon Apr 17, 2017 1:50 pm
Forum: Investing - Theory, News & General
Topic: Those that hold international equities at market-cap weight: what is your method?
Replies: 24
Views: 2904

Those that hold international equities at market-cap weight: what is your method?

There have been many interesting discussions on U.S. versus international equity allocation generally, and several on the reasoning for holding international equity at market-capitalization weight specifically. This thread is not meant to be a debate on either of those topics. Instead, I am curious ...
by donaldson
Fri Apr 14, 2017 10:29 am
Forum: Personal Consumer Issues
Topic: USAA 2.5% Cash Back Credit Card
Replies: 192
Views: 35141

Re: USAA 2.5% Cash Back Credit Card

I already have a USAA Cashback Rewards AmEx. Can I get them to just convert that to the new 2.5% card? I already meet the direct deposit and geographical requirements. I would suggest keeping both cards if possible. The AmEx card gives you 5% cashback on gas and military base purchases (up to $3k o...
by donaldson
Wed Apr 12, 2017 4:06 pm
Forum: Personal Consumer Issues
Topic: USAA 2.5% Cash Back Credit Card
Replies: 192
Views: 35141

Re: USAA 2.5% Cash Back Credit Card

To follow up from my last post, from my Ally account I just set up an automatic transfer of $1000 to my USAA checking account for the last business day of each month. Then, from my USAA account, I set up an automatic transfer of $1000 back to Ally for the first of each month. The first transfers wil...
by donaldson
Wed Apr 12, 2017 3:04 pm
Forum: Personal Consumer Issues
Topic: USAA 2.5% Cash Back Credit Card
Replies: 192
Views: 35141

Re: USAA 2.5% Cash Back Credit Card

Your restrictions on accounts, most to least severe, seem to be: --Simple IRA. Deposits required for retirement. (Serious LT consequence if not funded.) --USAA checking. Deposits required for monthly bills and to satisfy $1K deposit of 2.5% CC. (Serious ST consequences if not funded.) --Ally saving...
by donaldson
Wed Apr 12, 2017 12:30 pm
Forum: Personal Consumer Issues
Topic: USAA 2.5% Cash Back Credit Card
Replies: 192
Views: 35141

Re: USAA 2.5% Cash Back Credit Card

Posting here rather than starting a new thread: I just signed up for this card, and I am wondering if anyone has any advice on how to manage both the $1000 minimum direct deposit, and my desire to max out my employer retirement plan. Right now I am participating in a SIMPLE IRA plan with my employer...
by donaldson
Fri Mar 24, 2017 1:15 pm
Forum: Personal Finance (Not Investing)
Topic: How did you do your income taxes?
Replies: 95
Views: 5646

Re: How did you do your income taxes?

I am guessing that most people on this site will be over the income limit ($64,000), but I used the service below from United Way to get full access to H&R Block online and file my federal/state returns for free. That was something like an $80 savings from the equivalent version of Turbotax that...
by donaldson
Sat Jul 23, 2016 10:35 am
Forum: Investing - Help with Personal Investments
Topic: Asset allocation when combining target-date and non-target-date funds across accounts
Replies: 7
Views: 1043

Re: Asset allocation when combining target-date and non-target-date funds across accounts

Just to update this thread as promised, I did go with option #6 from my previous post:

donaldson wrote:6) Switch to a target-date fund closer to the AA for the rest of my portfolio (in this case, 2035) and ignore the SIMPLE IRA when rebalancing


My SIMPLE IRA is now in the BlackRock Lifepath Index 2035 (LIJAX).
by donaldson
Tue Jul 05, 2016 10:27 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation when combining target-date and non-target-date funds across accounts
Replies: 7
Views: 1043

Re: Asset allocation when combining target-date and non-target-date funds across accounts

If you could post your Simple IRA fund options, we could provide better responses. I'm surprised no one else asked for that yet. I don't have a full list, because conversations with the plan's advisor have gone like this: Me: Can I see the list of fund options for the plan, or is there a way to vie...
by donaldson
Mon Jul 04, 2016 7:54 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation when combining target-date and non-target-date funds across accounts
Replies: 7
Views: 1043

Re: Asset allocation when combining target-date and non-target-date funds across accounts

Thanks for the replies. I understand now that my error was picking the target-date fund by the date (closest to when I will be 59.5) rather than by allocation. I think for now, I will stick with the fund that I have and try rebalancing through my other accounts like Duckie described. I will re-asses...
by donaldson
Mon Jul 04, 2016 3:30 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation when combining target-date and non-target-date funds across accounts
Replies: 7
Views: 1043

Re: Asset allocation when combining target-date and non-target-date funds across accounts

I realized that my original post above was asking too many things at once, so I edited it to focus on my main question. Any feedback would be appreciated!
by donaldson
Mon Jul 04, 2016 2:12 am
Forum: Investing - Help with Personal Investments
Topic: Asset allocation when combining target-date and non-target-date funds across accounts
Replies: 7
Views: 1043

Asset allocation when combining target-date and non-target-date funds across accounts

I am making some changes in my portfolio and need some help understanding how to approach asset allocation when using a combination of a target-date fund and a 3-fund portfolio, in separate accounts. My question is how to handle the fact that the target-date fund's holdings are rebalanced on their o...