Search found 5 matches

by tritonx
Sat Jun 24, 2017 1:47 pm
Forum: Personal Investments
Topic: Tax efficient asset allocation across multiple accounts
Replies: 9
Views: 1706

Re: Tax efficient asset allocation across multiple accounts

Thank you, I'll make sure to read these.

The spreadsheet is very helpful, it is good to see the math that goes into these determinations. I think I see why I had gotten mixed up, because I had assumed that international stocks with the foreign tax credit would ultimately end up more tax-efficient - but now I see that it totally depends on other considerations like the type of dividends and yields. So really, several of the domestic stock funds from Vanguard end up being more efficient than international once that's taken into consideration. Based on this I think I'll switch my plan to keep my bonds and most of my international in my Roth IRA for now, and my total US stocks in taxable.
by tritonx
Fri Jun 23, 2017 2:20 pm
Forum: Personal Investments
Topic: Tax efficient asset allocation across multiple accounts
Replies: 9
Views: 1706

Re: Tax efficient asset allocation across multiple accounts

1. You are certainly not a dummy. This is close to the global market weighting of stocks, so it is very close to "neutral" with respect to global investing and very nearly the most passive choice possible. It is also what I do (and livesoft too iirc). 2. I would treat your taxable account as a retirement account and simply invest there. It is not true that one cannot save for needs in the distant future outside official "retirement" accounts. (I have neither a 401k or ability to contribute to a Roth IRA as a grad student and I contribute entirely to taxable -- there is no alternative). I don't think this should impact your asset allocation either, but definitely use separate stock and bond funds rather than "lifecy...
by tritonx
Thu Jun 22, 2017 4:47 pm
Forum: Personal Investments
Topic: Tax efficient asset allocation across multiple accounts
Replies: 9
Views: 1706

Re: Tax efficient asset allocation across multiple accounts

I will certainly need to learn more about them so that I can feel comfortable expanding the types of investments I make in the future. Like everything else, I'm sure ETFs will be less scary after I understand them better!

I'm so glad someone picked up on my name, by the way! There's been a lot of histology in my life recently haha.
by tritonx
Thu Jun 22, 2017 4:31 pm
Forum: Personal Investments
Topic: Tax efficient asset allocation across multiple accounts
Replies: 9
Views: 1706

Re: Tax efficient asset allocation across multiple accounts

Thank you for your response! I'm definitely still working through the wiki and have learned a lot of very useful information from it so far. 1. I had originally started with an equally weighted 3-fund portfolio because I had read Bernstein's "If You Can" pamphlet which recommended that allocation. As I learned more I realized that having ~33% in bonds was a bit too conservative for my age, so I shifted it down to 20%. I didn't learn much about breaking down the US/international allocation, so I just kept them equal, but I have noticed that most people seem to allocate less to international stocks, though I haven't read anything to exactly explain why that is. My intuition is that international stocks seem to give less returns hist...
by tritonx
Wed Jun 21, 2017 1:51 pm
Forum: Personal Investments
Topic: Tax efficient asset allocation across multiple accounts
Replies: 9
Views: 1706

Tax efficient asset allocation across multiple accounts

Hi, I'm planning to fund a taxable account and I've been doing a lot of research about how to best re-organize my investments to make my holdings tax efficient. I'm hoping the experienced people on this forum might be able to look over my plan and help me refine it. Emergency funds: Enough for 7.5 months of expenses Debt: $0 Tax Filing Status: Single Tax Rate: 25% Federal, 5.1% State State of Residence: MA Age: 28 Income: $45k Desired Asset allocation: 80% stocks / 20% bonds Desired International allocation: 50% of stocks Current retirement assets Roth IRA currently represents 100% of my retirement assets Size of the portfolio : Low five figures Taxable Not yet funded 401k Not available Roth IRA at Vanguard 20% Vanguard Total Bond Market In...