Search found 32 matches

by Case
Mon Apr 06, 2020 7:35 am
Forum: Personal Investments
Topic: tax lost harvesting question
Replies: 8
Views: 474

Re: tax lost harvesting question

I know for certain that you can deduct $3000 per year from your taxable income until the rest of the balance is consumed.

I do now know if you can cancel out capital gains in future years.

Does anyone know this?
by Case
Tue Mar 31, 2020 2:34 pm
Forum: Personal Investments
Topic: tax lost harvesting question
Replies: 8
Views: 474

Re: tax lost harvesting question

Hello all, I have read up on the process but am looking for some confirmation here since this is a potentially impactful decision. With the recent market tanks, I was thinking to do some tax-loss harvesting. Most of my taxable money is in VTSAX, with a few related funds such as VTI, VIMAX, VSMAX. M...
by Case
Tue Mar 31, 2020 1:44 pm
Forum: Personal Investments
Topic: tax lost harvesting question
Replies: 8
Views: 474

Re: tax lost harvesting question

I recommend you take some time read through WCI's tax loss harvesting guide. Down at the bottom he lists some good TLH pairs. https://www.whitecoatinvestor.com/tax-loss-harvesting-vanguard/ Thanks for the link. I checked it out and from what I can tell, my understanding is correct. With respect to ...
by Case
Tue Mar 31, 2020 1:05 pm
Forum: Personal Investments
Topic: tax lost harvesting question
Replies: 8
Views: 474

tax lost harvesting question

Hello all, I have read up on the process but am looking for some confirmation here since this is a potentially impactful decision. With the recent market tanks, I was thinking to do some tax-loss harvesting. Most of my taxable money is in VTSAX, with a few related funds such as VTI, VIMAX, VSMAX. My...
by Case
Mon May 08, 2017 9:13 pm
Forum: Personal Investments
Topic: should i switch my VBTLX into VWIUX (e.g. muni bond fund)? [in taxable]
Replies: 13
Views: 3637

Re: should i switch my VBTLX into VWIUX (e.g. muni bond fund)? [in taxable]

... Now, to throw another cog in the works, consider that I am aiming to retire in 5-10 years. At that point, I will fall from the 28% (or possibly 33% bracket near the end) down to a very low bracket. At this stage, VBTLX will probably be a better fit. But I wouldn't necessarily want to sell all m...
by Case
Mon May 08, 2017 6:24 am
Forum: Personal Investments
Topic: should i switch my VBTLX into VWIUX (e.g. muni bond fund)? [in taxable]
Replies: 13
Views: 3637

Re: should i switch my VBTLX into VWIUX (e.g. muni bond fund)? [in taxable]

I don't have the background to give a more exact answer. So I must look for simple, easy to follow "actions steps" that are "good enough" to make a decision. In this case: --VBTLX and VWIUX are both IT funds and recommended by the forum where appropriate. --VWIUX's use in the 28...
by Case
Sun May 07, 2017 8:07 pm
Forum: Personal Investments
Topic: should i switch my VBTLX into VWIUX (e.g. muni bond fund)? [in taxable]
Replies: 13
Views: 3637

Re: should i switch my VBTLX into VWIUX (e.g. muni bond fund)? [in taxable]

The short answer. Until you've conducted your own due diligence, VWIUX is a recommended safe place to start. The long answer. The safest advice is to use an IT (intermediate term) national muni fund. But as you are comfortable "shooting for the moon" in your tax-advantaged space, can do t...
by Case
Fri May 05, 2017 3:15 pm
Forum: Personal Investments
Topic: should i switch my VBTLX into VWIUX (e.g. muni bond fund)? [in taxable]
Replies: 13
Views: 3637

Re: should i switch my VBTLX into VWIUX (e.g. muni bond fund)? [in taxable]

flamesabers wrote:What tax bracket are you in? I think that's a major factor as to which bond fund is more suited to you.
28%
by Case
Fri May 05, 2017 11:27 am
Forum: Personal Investments
Topic: should i switch my VBTLX into VWIUX (e.g. muni bond fund)? [in taxable]
Replies: 13
Views: 3637

should i switch my VBTLX into VWIUX (e.g. muni bond fund)? [in taxable]

The bond composition of my portfolio is in VBTLX (total bond market fund). However, I store this fund in my taxable account rather than tax-free accounts. I do this because I want to maximize long term portfolio value rather than simply reduce overall taxes. This concept has been discussed here befo...
by Case
Tue Aug 09, 2016 12:31 pm
Forum: Personal Investments
Topic: stock index funds vs high yield tax-free bonds
Replies: 8
Views: 839

Re: stock index funds vs high yield tax-free bonds

There are so many issues here: 1. Tax-free bonds will have lower yields than taxable bonds. So if you are holding these instruments in a tax advantaged account one should select taxable bonds. 2. Equity is a different animal than debt. I would need a good reason (beyond "total return") to...
by Case
Tue Aug 09, 2016 12:26 pm
Forum: Personal Investments
Topic: stock index funds vs high yield tax-free bonds
Replies: 8
Views: 839

Re: stock index funds vs high yield tax-free bonds

It never makes sense to try to make one thing into something else that it is not. It could be you could make sense holding some HY munis, but the reason is not because they would play the role of stocks in a portfolio. What is the reason you want to do this? It would also be unlikely that someone w...
by Case
Tue Aug 09, 2016 10:48 am
Forum: Personal Investments
Topic: stock index funds vs high yield tax-free bonds
Replies: 8
Views: 839

stock index funds vs high yield tax-free bonds

I was curious about everyone's opinion on the following, especially fact or data supported viewpoints: Is there any merit in investing heavily in high yield tax-free bond funds (for example, NEA) as an alternative to investing in stocks. High-yield bonds are very volatile, almost on par with stocks,...
by Case
Thu Aug 04, 2016 2:40 pm
Forum: Personal Investments
Topic: Help correcting my old investment mistakes
Replies: 23
Views: 2258

Re: Help correcting my old investment mistakes

Emergency funds: I have this. Debt: No debt. Tax Filing Status: single Tax Rate: 28% Federal, 4% State; I have not yet hit AMT but it will come eventually…. Age: 30s Desired Asset allocation: 90:10 to 80:20 Is fairly aggressive. Have a look here: Asset_allocation#Rules_of_thumb . Given that you sta...
by Case
Thu Aug 04, 2016 12:43 pm
Forum: Personal Investments
Topic: Help correcting my old investment mistakes
Replies: 23
Views: 2258

Re: Help correcting my old investment mistakes

Hello Case, i'm gonna bump this to try for a few more responses to the original question we are missing some info to give you a comprehensive feedback. Please consider updating your opening post in the format described in this post ( asking portfolio questions ), with that information the people in...
by Case
Thu Aug 04, 2016 12:41 pm
Forum: Personal Investments
Topic: Help correcting my old investment mistakes
Replies: 23
Views: 2258

Re: Help correcting my old investment mistakes

*edited to indicate the fund names* My portfolio isn't terrible, but it is messy. I am very high in stocks (like 98%), but rather than being all VTSAX, I have some VTSAX and several other random stock indices (some mid, some small, etc...). The reason this happened is that I invested before I had d...
by Case
Wed Aug 03, 2016 11:37 am
Forum: Personal Investments
Topic: Help correcting my old investment mistakes
Replies: 23
Views: 2258

Re: Help correcting my old investment mistakes

It looks like you've been fund collecting and instead need a strategy. Try reading up on portfolio construction in the forum wikipedia: https://www.bogleheads.org/wiki/Lazy_portfolios You might enjoy reading Rick Ferri's "All About Asset Allocation", as well as Bill Shultheis's "Coff...
by Case
Wed Aug 03, 2016 9:51 am
Forum: Personal Investments
Topic: Help correcting my old investment mistakes
Replies: 23
Views: 2258

Re: Help correcting my old investment mistakes

It looks like you've been fund collecting and instead need a strategy. Try reading up on portfolio construction in the forum wikipedia: https://www.bogleheads.org/wiki/Lazy_portfolios You might enjoy reading Rick Ferri's "All About Asset Allocation", as well as Bill Shultheis's "Coff...
by Case
Wed Aug 03, 2016 9:48 am
Forum: Personal Investments
Topic: Help correcting my old investment mistakes
Replies: 23
Views: 2258

Re: Help correcting my old investment mistakes

Having a small cap tilt is not unreasonable, but your portfolio is overly complicated. Switching the s&p 500 for total stock market would be a start. They perform similarly, but total stock market adds a little small/mid for a possible potential outperformance. A value tilt is also not unreason...
by Case
Wed Aug 03, 2016 8:45 am
Forum: Personal Investments
Topic: Help correcting my old investment mistakes
Replies: 23
Views: 2258

Re: Help correcting my old investment mistakes

i'm gonna bump this to try for a few more responses to the original question
by Case
Tue Aug 02, 2016 4:37 pm
Forum: Personal Investments
Topic: Help correcting my old investment mistakes
Replies: 23
Views: 2258

Re: Help correcting my old investment mistakes

InvestorNewb wrote:You don't expect us to have the tickers memorized, do you? I would edit your post for more helpful responses.
I have added this info; please let me know if anything else is needed.
by Case
Tue Aug 02, 2016 3:46 pm
Forum: Personal Investments
Topic: Help correcting my old investment mistakes
Replies: 23
Views: 2258

Re: Help correcting my old investment mistakes

Anything in a retirement account can be exchanged without tax consequences so I assume unless noted otherwise everything you've listed is in a taxable account. Holding the total bond market in a taxable account isn't tax efficient because all of the distributions are taxed as ordinary income, which...
by Case
Tue Aug 02, 2016 2:47 pm
Forum: Personal Investments
Topic: Help correcting my old investment mistakes
Replies: 23
Views: 2258

Help correcting my old investment mistakes

*edited to indicate the fund names* My portfolio isn't terrible, but it is messy. I am very high in stocks (like 98%), but rather than being all VTSAX, I have some VTSAX and several other random stock indices (some mid, some small, etc...). The reason this happened is that I invested before I had di...
by Case
Thu Feb 18, 2016 5:20 pm
Forum: Personal Investments
Topic: high yield munis, again
Replies: 8
Views: 1735

Re: high yield munis, again

At 95% stocks, you should not be reaching for yield with the 5% bonds. You want the most stable bonds possible. Looking at yields is misguided: you could just have more stocks if you wanted higher returns with risk, and simplify your life. I wouldn't use munis at all. I'd use Treasuries (possibly l...
by Case
Thu Feb 18, 2016 2:57 pm
Forum: Personal Investments
Topic: high yield munis, again
Replies: 8
Views: 1735

Re: high yield munis, again

Let me help clarify a couple of terms that seem to be thrown around interchangeably but have different meanings. High yield bonds are the same as junk bonds, but with a more marketable name. More specifically, they're bonds with ratings less than BBB- by the ratings agencies and have a higher proba...
by Case
Thu Feb 18, 2016 11:32 am
Forum: Personal Investments
Topic: high yield munis, again
Replies: 8
Views: 1735

high yield munis, again

Last month I posted looking for advice on getting high yield munis. I have some follow up questions: I am (still) considering getting some high yield muni funds for the following reasons: -I understand that the high yield bond funds are often more volatile than other bond funds (and in the most extr...
by Case
Wed Jan 06, 2016 2:27 pm
Forum: Personal Investments
Topic: Replacing some total-stock funds with high yield muni funds
Replies: 24
Views: 3291

Re: Replacing some total-stock funds with high yield muni funds

Nuveen Municipal Opportunity (NIO) uses about 36% leverage, trades at around a 9% discount to NAV, and goes for really long-dated bonds. That is the source of the yield. The 1.47% expense ratio includes 0.45% internal expense from the leverage. That will go up as leverage costs increase with rising...
by Case
Mon Jan 04, 2016 9:25 pm
Forum: Personal Investments
Topic: Replacing some total-stock funds with high yield muni funds
Replies: 24
Views: 3291

Re: Replacing some total-stock funds with high yield muni funds

Vanguard Total Stock Market Index fund is reasonably tax friendly so I'm not sure what is the problem that you're trying to solve. Avi I think the issue is not getting triggered into AMT territory and thinking that just a little less income one place or another might tip the balance. This is correc...
by Case
Mon Jan 04, 2016 2:00 pm
Forum: Personal Investments
Topic: Replacing some total-stock funds with high yield muni funds
Replies: 24
Views: 3291

Re: Replacing some total-stock funds with high yield muni funds

Why do you want to invest in a fund with a high yield? You should be paying attention to expected total return which is only available at the cost of increased risk. High yield muni funds are not a form of free lunch. I am interested for the tax benefits; as I get closer to AMT I"m hoping I ca...
by Case
Mon Jan 04, 2016 9:47 am
Forum: Personal Investments
Topic: Replacing some total-stock funds with high yield muni funds
Replies: 24
Views: 3291

Re: Replacing some total-stock funds with high yield muni funds

Do not do this under any circumstances. The managers of VWAHX aren't missing some obvious deals that NIO gets. They've been around for a while, including when these bonds were first issued. Furthermore, even if they did (and they don't), the buyers and sellers of NIO on the market would bid up the ...
by Case
Mon Jan 04, 2016 9:32 am
Forum: Personal Investments
Topic: Replacing some total-stock funds with high yield muni funds
Replies: 24
Views: 3291

Re: Replacing some total-stock funds with high yield muni funds

I'm not familiar with the specific funds you mention, but if you do choose to invest in muni bond funds and you are approaching AMT you should make sure that they do not contain "specified private activity" muni bonds since interest from those types are not excluded from AMT. 'Thanks for ...
by Case
Mon Jan 04, 2016 6:48 am
Forum: Personal Investments
Topic: Replacing some total-stock funds with high yield muni funds
Replies: 24
Views: 3291

Re: Replacing some total-stock funds with high yield muni funds

Do not do this under any circumstances. The managers of VWAHX aren't missing some obvious deals that NIO gets. They've been around for a while, including when these bonds were first issued. Furthermore, even if they did (and they don't), the buyers and sellers of NIO on the market would bid up the ...
by Case
Sun Jan 03, 2016 7:05 pm
Forum: Personal Investments
Topic: Replacing some total-stock funds with high yield muni funds
Replies: 24
Views: 3291

Replacing some total-stock funds with high yield muni funds

or background, I am just into the 33% bracket. Most of my portfolio is in VTSAX or similar funds, with a small chunk of that in small/mid cap funds. I have very little in terms of bonds; thus I have a rather aggressive/risky portfolio composition. That said, what do you think of this idea: Replace s...