Search found 264 matches

by JD101
Tue Feb 07, 2023 4:14 pm
Forum: Personal Investments
Topic: VUSXX vs. VMFXX
Replies: 6
Views: 5778

Re: VUSXX vs. VMFXX

Is there any difference between VUSXX, VMFXX and short term T-bills bought through auctions? It seems the current yeilds are around 4.5% and they all are state tax exempt.
by JD101
Tue Feb 07, 2023 3:32 pm
Forum: Personal Investments
Topic: Best brokerage for automatic rolling treasury ladder
Replies: 35
Views: 2919

Re: Best brokerage for automatic rolling treasury ladder

What would be a reason for doing a rolling adder. Because you dont know what the interest rate is going to be and you want to take an advantage in rising interest rate scenario?
by JD101
Tue Feb 07, 2023 1:08 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 4863
Views: 571255

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

ok so what about if you bought I-bonds, did a direct transfer from bank to Treasury direct, now when you sell it after a year and ready to give up 3 months interest, isn't it a direct transfer back to your linked account or there is more paper work involved?
by JD101
Tue Feb 07, 2023 9:55 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 4863
Views: 571255

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

evelynmanley wrote: Tue Feb 07, 2023 9:44 am
OP could also purchase treasuries from Treasury Direct that will expire in time to purchase I-Bonds at Treasury Direct, bypassing the brokerage ACH transfer hassle.
Thant surely will save some transfer time. Do you know if there is lag in buy and sell? I read some things are not settled for couple of days buying through brokerage?
by JD101
Tue Feb 07, 2023 9:28 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 4863
Views: 571255

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

TwstdSista wrote: Tue Feb 07, 2023 8:54 am
JD101 wrote: Tue Feb 07, 2023 8:33 am So current I-bonds rate is 6.89%, the new rate will come out in May 2023. It would have been better to invest at the start of the year so at least you would get 6.89% till May 2023....
FYI - An I Bond purchased between now and April will get a full six months worth of interest at the 6.89% rate. (for example, an April purchase will get 6.89% through September)
I don't know if you can wait to get a better projection in April. Till then invest in some treasuries say at Vanguard that will expire in April. will have to consider the time it takes to get the money in the bank after a sale at Vanguard, the same money will be used to buy I-bonds at T-direct.
by JD101
Tue Feb 07, 2023 8:33 am
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 4863
Views: 571255

Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

So current I-bonds rate is 6.89%, the new rate will come out in May 2023. It would have been better to invest at the start of the year so at least you would get 6.89% till May 2023. Then even if the rate drops to say 5-6%, you would have still beat any bank or treasury interest assuming you will lose 3 months interest when liquidating. As most of us are not going to hold it for 5 years unless the rates are high. This also assumes you don't need money for one year. Any prediction on interest rate after May? and does it make sense to invest even now? already lost a month. Also when you have to pay last 3 months interest, it would be at the rate that is going on at that time correct? and not the higher rate at which point the investment was in...
by JD101
Mon Feb 06, 2023 8:43 pm
Forum: Personal Investments
Topic: Vanguard MM or T-Bill autoroll?
Replies: 17
Views: 3185

Re: Vanguard MM or T-Bill autoroll?

So the way I understand is for fixed income the options are:
Treasury Bonds ( short and long term) - state tax exempt
Money Market - may be state tax exempt
CD's - Pay federal and state taxes
Savings account - Pay federal and State taxes.
Treasuries should provide the highest effective(after tax) ROI provided you cant lock it for the period.
Let me know if this is not correct.
by JD101
Mon Feb 06, 2023 9:29 am
Forum: Personal Investments
Topic: Vanguard MM or T-Bill autoroll?
Replies: 17
Views: 3185

Re: Vanguard MM or T-Bill autoroll?

Where would you stash about $70k? I have the emergency funds and wouldn't need this for a foreseeable future. Kinda of treating this as fixed income portfolio instead of investing in stocks and bonds based on asset mix goals.
by JD101
Sun Feb 05, 2023 7:03 pm
Forum: Investing - Theory, News & General
Topic: I Bonds Mega Thread (I Bond Heads Rejoice!)
Replies: 4863
Views: 571255

When should you buy I-bonds 2023

Is it a good time to buy I-bonds for 2023?

This thread merged into this on-going I Bond discussion thread. Thanks to the member who reported this connection.
Moderator Pops1860
by JD101
Sun Feb 05, 2023 4:02 pm
Forum: Personal Investments
Topic: Portfolio Watch
Replies: 21
Views: 2227

Re: Portfolio Watch

What is the best way to watch portfolio asset mix? I linked all accounts with fidelity but then someone brought up security issue so I disconnected it all. I then created Personal capital( manual entries), Portfolio watch at Schwab but % seem to be off. For e.g. at Schwab I have investment only in one fund, TDF, the portfolio watch should provide me exactly the same % as the fund portfolio page tell me but it is Off. I chat with Schwab and they said portfolio watch may not be using the current holdings. I have a spread sheet that does provide me good info but you have to manually allocate things such as REIT etc, I wish there was something online and then use spread sheet to tally to make sure you are not off more than few % points. The pro...
by JD101
Sat Feb 04, 2023 8:29 am
Forum: Personal Investments
Topic: % equities in distribution portfolio
Replies: 31
Views: 3683

Re: % equities in distribution portfolio

There is a lot of discussion in this thread surrounding stocks/Bonds ratio. Assuming Bonds would hold the ground and they are negatively corelated to stocks. The idea is bond should not go down in value(principle that put into it), the yields may vary. But recently it seems bonds haven't been doing well as I hear, not sure when they say that they mean the yields haven't been as expected. I hope you are not losing principle in bonds otherwise we are getting hammered from stocks and bonds.
by JD101
Fri Feb 03, 2023 8:13 am
Forum: Personal Investments
Topic: 3-Fund Tax Efficient Portfolio - Beginner
Replies: 19
Views: 4304

Re: 3-Fund Tax Efficient Portfolio - Beginner

longinvest wrote: Fri Feb 03, 2023 6:56 am I think that many investors would benefit from using a One-Fund Portfolio with a single identical globally-diversified all-in-one index fund or ETF like an iShares Core Allocation ETF (AOA, AOR, AOM, and AOK) in all accounts. Such all-in-one ETFs can mostly avoid distributing capital gains, in a taxable account, despite continuous rebalancing. That's pretty amazing.
The one fund portfolio would not be good idea in a taxable account though? It will balance regularly and put our capital gains/dividends. correct? The one funds portfolio is similar to target funds except the asset mix ratios don't change over time.
by JD101
Fri Feb 03, 2023 7:58 am
Forum: Personal Investments
Topic: Comparing Fed Money Market rates to Tbill Auction Results
Replies: 6
Views: 1212

Re: Comparing Fed Money Market rates to Tbill Auction Results

grabiner wrote: Thu Feb 02, 2023 10:26 pm A NY muni money-market fund is exempt from federal, NY state, and NYC tax; similarly for other states.
I would be interested in this but last 7 day yield is terrible 1.5%. Thanks for the summary covering every angle.
by JD101
Thu Feb 02, 2023 9:54 pm
Forum: Personal Investments
Topic: Portfolio Watch
Replies: 21
Views: 2227

Re: Portfolio Watch

you have to link one account first and then I see there is option to manually add your investments. Thanks then I removed my small linked bank account.
by JD101
Thu Feb 02, 2023 1:58 pm
Forum: Personal Investments
Topic: Comparing Fed Money Market rates to Tbill Auction Results
Replies: 6
Views: 1212

Re: Comparing Fed Money Market rates to Tbill Auction Results

Are Money market funds federal and state exempted?
looks like T-bills are state tax exempted(beneficial where there is state tax), but not federal tax exempted.
by JD101
Thu Feb 02, 2023 11:28 am
Forum: Personal Investments
Topic: Portfolio Watch
Replies: 21
Views: 2227

Re: Portfolio Watch

... Do you know if any better tool where you can keep track of asset allocation? I like the Personal Capital (free) tool. It's very accurate, at least for my linked accounts. For those uncomfortable linking external accounts, you can manually add your holdings. BTW, even though I don't use them for portfolio management, their tech support was very responsive when I stopped getting my daily emailed transaction summary. Personal Capital is not allowing manually adding your holding? I wish there was a site where you would provide the ticker and it would get the fund related information from the available sources and we just manually input the current market price and it would provide you snap shot of asset mix. This will avoid having to share...
by JD101
Thu Feb 02, 2023 10:02 am
Forum: Personal Investments
Topic: Auto-roll Tbill experience at Schwab
Replies: 25
Views: 4693

Re: Auto-roll Tbill experience at Schwab

so looks like Fidelity Auto-roll is a winner?
by JD101
Thu Feb 02, 2023 9:58 am
Forum: Personal Investments
Topic: Comparing Fed Money Market rates to Tbill Auction Results
Replies: 6
Views: 1212

Re: Comparing Fed Money Market rates to Tbill Auction Results

MGBMartin wrote: Thu Feb 02, 2023 9:06 am That’s what I do.
I use SWVXX and VMFXX as well as T-Bills, mainly 26 week, for my cash holdings.
I don’t really make a direct comparison between more like I use the rates for reference points.
Here’s the Treasury page that shows daily T-Bill rates that I also use for reference.
https://home.treasury.gov/resource-cent ... value=2023
Would the money market fund be state tax exempted? If yes, why not just invest in money market funds ? it is liquid and yield is not far off from the treasuries where the money is locked for the period and then you have to keep buying if not enrolled in auto roll.
by JD101
Wed Feb 01, 2023 1:07 pm
Forum: Personal Investments
Topic: Advice, Fidelity for taxable and then add Schwab for IRAs
Replies: 7
Views: 451

Re: Advice, Fidelity for taxable and then add Schwab for IRAs

I recently transferred my IRA from Vanguard to Schwab rollover IRA. It took about a week and process was not very complicated. Schwab matched the bonus offerings out there. I still left some accounts at Vanguard because sometimes you do have good funds at Vanguard that you might want to buy without fees and there Target funds are slightly different than Schwab and Fidelity so gives a little different mix. Yes, ideally it would be nice to get everything over to one place, it will be easier to watch your portfolio for sure. Just cant decide to pull plug on Vanguard, to reset up everything will be a lot of paper work. Even in this day and age, Vanguard like notarized copies on certain things which have to be mailed to them. Fidelity seems to h...
by JD101
Wed Feb 01, 2023 12:58 pm
Forum: Personal Investments
Topic: Advice on fixed-income investments
Replies: 9
Views: 1321

Re: Advice on fixed-income investments

bhluckyusaguy wrote: Wed Feb 01, 2023 9:59 am
Here is a link describing how to purchase them from a broker https://thefinancebuff.com/treasury-bil ... arket.html
That link is really good a lot of stuff in one place! Have to figure out if Vanguard would allow automatic roll. I know fidelity does.
by JD101
Tue Jan 31, 2023 3:49 pm
Forum: Personal Investments
Topic: Online Savings Accounts
Replies: 13
Views: 1555

Re: Online Savings Accounts

nalor511 wrote: Tue Jan 31, 2023 1:52 pm Is the difference in interest a cost you're willing to pay for convenience? You can also just use your favorite broker and buy 1mo tbills at 4.5% with no state tax. I use Fidelity CMA to do that, and hold 1 mo expenses in sprxx/fzdxx (4.16%+ interest)
What exactly are you buying? one month t-bills? I didn't find this on fidelity. Also, you have to pay federal taxes correct? What happens after a month? you have to buy it again? Fidelity also have auto roll.
by JD101
Mon Jan 30, 2023 10:13 am
Forum: Personal Investments
Topic: Portfolio Review
Replies: 36
Views: 3044

Re: Portfolio Review

wetgear wrote: Mon Jan 30, 2023 8:20 am
Gotcha, but how does hiding values in a spreadsheet protect you? It's not like a social security number.
It doesn't! In my head I think it is safer this way, that's all.
I can be little bit off on the % mix ( for the individual funds) I used for each of the funds as they don't have only 3 categories but other than that, the net % is going to be net % whether it is $100 or $10K. I cross checked with Fidelity profiler and asset mix is pretty close.
by JD101
Sun Jan 29, 2023 5:36 pm
Forum: Personal Investments
Topic: Portfolio Review
Replies: 36
Views: 3044

Re: Portfolio Review

wetgear wrote: Sun Jan 29, 2023 5:22 pm
Looks good, how do you know what your total AA looks like without the weighting of the balance of each though?
I hid the dollar figures for security reasons :!: I have spread sheets to see how the numbers would look like after the adjustment. If that's what you meant to ask.
by JD101
Sun Jan 29, 2023 4:50 pm
Forum: Personal Investments
Topic: Portfolio Review
Replies: 36
Views: 3044

Re: Portfolio Review

wetgear wrote: Sun Jan 29, 2023 3:24 pm
No it bothers me that there isn't an easier way to view those either. That being said I think Retiredjg gave you even better options, regarding a 3 fund portfolio, in your other thread. What does you current portfolio look like? Did you take those suggestions?
Image

Correction, fidelity should read Target 2030

Yes, I did take the valuable suggestions Retiredjg provided and started building my portfolio. This is how it looks like. I need to switch at Schwab; Balanced Index Fund and Target 2035 to Target 2030 and that should bring my asset allocation to 43/23/35. (65/35). Let me know if you see anything.
by JD101
Sun Jan 29, 2023 2:55 pm
Forum: Personal Investments
Topic: Target date funds
Replies: 37
Views: 4116

Re: Target date funds

OK thank you both, that rests the matter!

Target date funds have a glide path and it gives you a rough idea as to how asset mix would tentatively follow over time. Do you know if they have a tabular version of the glide path which will provide close information than eyeballing it which means you can be off few % points.
by JD101
Sun Jan 29, 2023 1:56 pm
Forum: Personal Investments
Topic: Target date funds
Replies: 37
Views: 4116

Re: Target date funds

retiredjg wrote: Sun Jan 29, 2023 12:46 pm Some fund families, thinking Schwab and Fidelity here and maybe there are others, have a target fund series that is index and another series that is active (or mixed).
Schwab Target 2025 Index Fund
https://www.schwabassetmanagement.com/products/swydx
Say for e.g. it says index fund. Uses mostly ETFs

SCHZ SCHWAB US AGGREGATE BOND ETF
36.12%
$163.2M
SCHX SCHWAB US LARGE-CAP ETF
30.73%
$145.4M
SCHF SCHWAB INTERNATIONAL EQUITY ETF
14.19%
$65.5M
SCHO SCHWAB SHORT TERM US TREASURY ETF
5.11%
$23.0M
SCHH SCHWAB US REIT ETF
3.68%
$17.2M
SCHP SCHWAB US TIPS ETF
3.24%
$15.0M
SVUXX SCHWAB VARIABL SH PRICE CL ULTRA
2.35%
$10.8M
SCHA SCHWAB US SMALL-CAP ETF
2.27%
$10.8M
SCHE SCHWAB EMERGING MARKETS EQUITY ETF
1.60%
$7.4M
USD US DOLLAR
by JD101
Sun Jan 29, 2023 12:31 pm
Forum: Personal Investments
Topic: Target date funds
Replies: 37
Views: 4116

Re: Target date funds

Are target date index funds considered as active management? Some target funds have REITs, some don't. or are they investing in broad market indexes based on glide path and asset mix etc therefore they are not considered as active funds. Bogleheads philosophy is go passive investing.
by JD101
Sat Jan 28, 2023 8:57 pm
Forum: Personal Investments
Topic: Portfolio Watch
Replies: 21
Views: 2227

Re: Portfolio Watch

Here when we talk about assets allocation or asset mix typically we refer to it as mix of stocks and bonds in broad terms. As you are monitoring your portfolio, you may have more categories such as:

US stocks and International stocks are obviously going to stocks column.
How about REIT, emerging market etc?
I-bonds, can they go in bonds section? How about cash? If you can let me know how you are categorizing it would be helpful.
I would think US stocks, international stocks, REITs, emerging markets can go in stocks column and everything else can go in bonds column. Just want to make sure I am not ignoring any vital details.
by JD101
Sat Jan 28, 2023 12:29 pm
Forum: Personal Investments
Topic: Quick Question: Rollover IRA to 401k
Replies: 3
Views: 186

Re: Quick Question: Rollover IRA to 401k

I'm exactly in your situation. My understanding is there is credit protection till 1M or 1.5 million in IRA accounts. My 401k allows partial roll over so I was thinking of doing a partial roll over to keep IRA accounts below the credit protection limit for next 4-5 years. The reason for not rolling over everything is because the the investment options in 401k. I am invested in Target Retirement at Schwab in my roll over and Black Rock Target Index in my 401k plan, so technically they are the same and E/R is also similar. But the composition may be different and I have to do enough research to make sure the 5 yr, 10 yr yields are same. If that is the case, then I don't see any reason to not rollover as far as the invest choice is concerned a...
by JD101
Fri Jan 27, 2023 10:05 am
Forum: Personal Investments
Topic: Portfolio Watch
Replies: 21
Views: 2227

Re: Portfolio Watch

retired@50 wrote: Fri Jan 27, 2023 9:31 am
Yes, it would be a concern to me.

Providing login and password to anyone is probably a violation of the terms of service for any of the major financial firms, which could mean if you're a hacking victim you'd find yourself out of luck. I'd find a way to update things manually on a quarterly basis.

Regards,
I'm not talking going to some 3rd party aggregator but limiting the usage through firms such as Fidelity. Fidelity hosts this and Vanguard and Schwab provides the info, that means they must have worked out security issues.
by JD101
Fri Jan 27, 2023 8:34 am
Forum: Personal Investments
Topic: Portfolio Watch
Replies: 21
Views: 2227

Re: Portfolio Watch

When you link up accounts, you have to provide login and password for all the accounts you want to link up and not sure where and how it gets saved, that the data in encrypted. Do you think this can be a concern?
by JD101
Thu Jan 26, 2023 5:31 pm
Forum: Personal Investments
Topic: Portfolio Watch
Replies: 21
Views: 2227

Re: Portfolio Watch

livesoft wrote: Thu Jan 26, 2023 5:26 pm
Just because one updates Balances & Holdings does NOT mean that the Portfolio Watch tool knows about that update. Try again in 30 minutes, 1 hour, overnight and see what happens.
I haven't tried it long enough but I believe there is a refresh button and once you click on it it should update if it hasn't already updated. When I looked at it this morning everything seems to be updated. Not sure when is the last time you used this tool because they may have updated it over time. Do you know if any better tool where you can keep track of asset allocation?
by JD101
Thu Jan 26, 2023 10:09 am
Forum: Personal Investments
Topic: Portfolio Watch
Replies: 21
Views: 2227

Re: Portfolio Watch

Guys,
Those of you who have accounts with Fidelity, you should be able to link the Vanguard and Schwab assets. You may be able link other institutions as well. I like this tool. At Vanguard and Schwab, you have to manually enter this info, which the small % may get left out and things change over time, automatically updating is a good thing.
by JD101
Tue Jan 24, 2023 7:35 pm
Forum: Personal Investments
Topic: I finally did it! [I'm managing my retirement accounts]
Replies: 31
Views: 4045

Re: I finally did it! [I'm managing my retirement accounts]

Some posts are talking about keeping track of cost basis. Is this applicable to after tax accounts or retirement accounts as well? If you are transferring assets from brokerage to brokerage without even seeing a check, doesn't everything get transferred? What do we need to keep track of when we transfer assets?
by JD101
Tue Jan 24, 2023 9:48 am
Forum: Personal Investments
Topic: Portfolio Watch
Replies: 21
Views: 2227

Portfolio Watch

I have account at Schwab(1 fund) and Vanguard( 4-5 funds) and Fidelity(1 fund, 401k). I thought it would be easier to add Schwab and Fidelity to portfolio watch at Vanguard and input things like Fund ticker, no of shares, cost basis etc and then from there the portfolio watch would keep track and provide me the snapshot on how my asset classes, stock/bonds ratio look like etc. When I added other account, it is showing the total portfolio value but it is not showing proper stock/bonds ratio. Am I missing something? Has anyone done it at Schwab? I haven't tried it there.
by JD101
Mon Jan 23, 2023 8:10 pm
Forum: Personal Investments
Topic: Importance of have taxable account for retirement
Replies: 23
Views: 2249

Re: Importance of have taxable account for retirement

My understanding is you need taxable account to pay for the taxes due on non Roth accounts. Roth accounts may be used to pay taxes on IRA/401k accounts but generally Roth account is the last to be drawn out. I'm not sure if there is a little problem here, your taxable account will generally have stock funds to avoid ordinary gains and this can be down at the time you need to withdraw money to pay taxes. Someone more knowledgeable can comment on this.
by JD101
Mon Jan 23, 2023 12:04 pm
Forum: Personal Investments
Topic: Foreign tax credit strategy
Replies: 20
Views: 2238

Re: Foreign tax credit strategy

By botheration I meant in the context of whether one should worry about putting all international in taxable to get a FTC and constraints it can create in asset distribution. I know, once you know what the FTC, you just have to plug it in the tax software and it would do the rest, so as far as tax preparation goes it is non issue. Funds placement can be tricky because of this restriction.
by JD101
Mon Jan 23, 2023 11:10 am
Forum: Personal Investments
Topic: Foreign tax credit strategy
Replies: 20
Views: 2238

Re: Foreign tax credit strategy

Do we have a rough number to go by on a foreign tax credit to see if it is something worth the botheration? Say on a 100k in international stocks, how much FT credit do you expect to receive?
by JD101
Mon Jan 23, 2023 10:45 am
Forum: Personal Investments
Topic: Portfolio Review
Replies: 36
Views: 3044

Re: Portfolio Review

What you get for doing that is a portfolio that is very easy to maintain. All you have to do is add money and check every few years that the target funds are moving toward bonds at the speed you want. If not, you can exchange into the next younger or older target fund. This idea would also easily pass to your wife's management without her having to worry about much. Almost every portfolio idea gives up something to achieve something else. It is rare of any portfolio to have everything wanted. The trick is to figure out which things are most important to you and try to achieve that with the least possible damage to other things you would like to have. Very well put and summarized. How would you do tax loss harvesting in taxable account? Als...
by JD101
Sun Jan 22, 2023 7:46 pm
Forum: Personal Investments
Topic: Wash Sale
Replies: 6
Views: 511

Re: Wash Sale

In an IRA account ,if I exchange international stock index and Money market fund with target retirement fund, it shouldn't cause Wash sale correct? I know in IRA account you are not taking any tax deduction know, but it may change cost basis and I'm not sure if that is construed as wash sale.

During the same month, in a taxable account If I sold Star fund and Wellsley fund ( with a capital loss) and bought total market and international index funds, It shouldn't be a wash sale?
by JD101
Sat Jan 21, 2023 10:20 pm
Forum: Personal Investments
Topic: Schwab Target Retirement fund for taxable account
Replies: 18
Views: 1836

Re: Schwab Target Retirement fund for taxable account

Cant believe you know so much in depth about the ER :shock:
by JD101
Sat Jan 21, 2023 8:33 pm
Forum: Personal Investments
Topic: How do you peddle your portfolio
Replies: 2
Views: 549

How do you peddle your portfolio

So once you have your asset allocation and funds placed according to the placement document, how do you maneuver it? What kind of operations people have to do over time? Once we understand what will need to be done with funds, then it is better to place funds strategically.

Couple of thing may happen over time.
You will have contribution going to 401k and or IRA/Roth.
You may have contribution going to TA if you still have excess funds
You may pay taxes if you are converting IRA to Roth
Stocks may go up or down.
Rebalancing

Please provide summary so we can ask any follow up questions. Thanks!
by JD101
Sat Jan 21, 2023 7:45 pm
Forum: Personal Investments
Topic: Simplest portfolio for recent reitiree
Replies: 62
Views: 6672

Re: Simplest portfolio for recent reitiree

Watty wrote: Sat Jan 21, 2023 7:41 pm
My situation is a lot different but I just use a target date retirement income fund for most of my funds.
Do you do that for your taxable accounts as well? don't you get a lot of ordinary dividend every year depending upon how much money you have in Taxable account.
by JD101
Sat Jan 21, 2023 7:34 pm
Forum: Personal Investments
Topic: Schwab Target Retirement fund for taxable account
Replies: 18
Views: 1836

Re: Schwab Target Retirement fund for taxable account

DeliberateDonkey wrote: Sat Jan 21, 2023 6:32 pm
The investment adviser and its affiliates have agreed to limit the total annual fund operating expenses (including AFFE, but excluding taxes and certain non-routine expenses) of the fund to 0.08% for so long as the investment adviser serves as the adviser to the fund. This agreement may only be amended or terminated with the approval of the fund’s Board of Trustees.
Does that mean it is 0.08% for Schwab as well, meaning there is no difference in Schwab and Vanguard as far as ER is concerned for Target Index Funds
by JD101
Sat Jan 21, 2023 5:38 pm
Forum: Personal Investments
Topic: Schwab Target Retirement fund for taxable account
Replies: 18
Views: 1836

Re: Schwab Target Retirement fund for taxable account

Vanguard 2035 Target fund have E/R of 0.08% and Schwab Target fund have net E/R of 0.08 but Gross E/R of 0.12%. So I think gross is what we have to go buy. Is this a big of a concern? Vanguard is not listing gross. So I am not sure it is the way two companies are listing but expense wise they are the same.
by JD101
Sat Jan 21, 2023 4:50 pm
Forum: Personal Investments
Topic: Why does Vanguard target retirement have 40% of equities in international?
Replies: 40
Views: 3509

Re: Why does Vanguard target retirement have 40% of equities in international?

Doesn't too much diversification is going to give rusty performance? somebody somewhere is always going to drag the performance down?
by JD101
Sat Jan 21, 2023 4:00 pm
Forum: Personal Investments
Topic: Why does Vanguard target retirement have 40% of equities in international?
Replies: 40
Views: 3509

Re: Why does Vanguard target retirement have 40% of equities in international?

It also has international bond index and someone posted a link here as to why they( US bods and International Bonds) are counter productive.
by JD101
Sat Jan 21, 2023 10:36 am
Forum: Personal Investments
Topic: Portfolio Review
Replies: 36
Views: 3044

Re: Portfolio Review

Some questions. 1. Do you want to stay at 60/40 or do you want to migrate with time toward more bonds? 2. If you want to stay at 60/40, are you willing to use ETFs to achieve that? 3. About when do you plan to retire? Do you think your tax bracket will drop when you retire? This portfolio idea has each account at about the asset allocation you want. It would be super simple to manage. I think something like this would work great. Thanks for the hard work you put into it and more power to you! I'm still working and can take little more risk (65% stocks). I plan to retire in about 10-12 yrs. Yes tax bracket will drop for sure. Only income I will have is retirement and then from investments, Roth conversions etc. As the time goes, I will move...
by JD101
Sat Jan 21, 2023 9:05 am
Forum: Personal Investments
Topic: Portfolio Review
Replies: 36
Views: 3044

Re: Portfolio Review

You remember earlier when I said there are lots of good ways to do this? That is also a good choice....but you said you wanted to replace the balanced funds with individual funds. So that is what I did. If you have changed your mind about that, there is another way to set this up that is easier. Yes you did. I know what you have done gives a flexibility in any which way for future :) I'm always worried about the spouse able to digest and handle all this and hence want to keep it as simple as possible. Can you provide guidance on constructing a portfolio with balanced funds, target funds and then i can have stock funds in taxable accounts. Again to summarize 401k funds have Vanguard Balanced index fund, S&P 500, Bonds fund and target re...
by JD101
Fri Jan 20, 2023 9:20 pm
Forum: Personal Investments
Topic: Portfolio Review
Replies: 36
Views: 3044

Re: Portfolio Review

Retiredjg and others:

Why not international stock funds in Taxable account? That way you can get some Foreign tax credit.
Also put US stock funds in Roth first and then Taxable. US stocks is supposed grow bigger than the other. Roth is tax free.

What about municipal federal and state bond funds in taxable account? If this can fill all of the place in taxable account then target retirement or balance index can go anywhere and make investment easier. Basically it will be 2-fund portfolio.

The bigger issue is capital/gain and or dividends in taxable account and that's why we have do so many tricks of the trade.