Search found 653 matches

by ebeb
Tue Mar 19, 2024 2:42 am
Forum: Non-US Investing
Topic: Seeking advice for existing portfolios when moving outside of US
Replies: 6
Views: 1060

Re: Seeking advice for existing portfolios when moving outside of US

There are many threads on this topic. This is indeed a gray area. Some people just maintain a friend, relative address, drivers license in US and keep their residency status in US to avoid all the hassles with the tax and investments. :oops:
by ebeb
Fri Mar 15, 2024 9:52 am
Forum: Personal Investments
Topic: Liquid cash for 5year horizon at 5% apy
Replies: 16
Views: 1646

Re: Liquid cash for 5year horizon at 5% apy

InNameOnly wrote: Fri Mar 15, 2024 9:18 am Raisin.com offers a no penalty CD at 5% apy for one year.
Doesn't seem a better deal than 5.17% 1-year Treasury we can get now.
by ebeb
Fri Mar 15, 2024 4:51 am
Forum: Personal Investments
Topic: Liquid cash for 5year horizon at 5% apy
Replies: 16
Views: 1646

Re: Liquid cash for 5year horizon at 5% apy

Treasury ladder only drawback is the longer you go on duration like 5years the higher the loss percentage for selling before maturity, if rising interest rates. Will interest rise in next 5 years seems doubtful.
by ebeb
Fri Mar 15, 2024 3:24 am
Forum: Personal Investments
Topic: Liquid cash for 5year horizon at 5% apy
Replies: 16
Views: 1646

Re: Liquid cash for 5year horizon at 5% apy

lakpr wrote: Fri Mar 15, 2024 3:15 am MYGAs may sort of fiill the need.

The MYGA itself imposes a limitation that the money will be inaccessible completely the first year, then makes 10% of the principal available for withdrawal the second year, 20% of the outstanding principal the third year, etc.
Unfortunately my requirement is 100% liquidity at any time between 1-5years so MYGA may be tough. :shock:
by ebeb
Fri Mar 15, 2024 2:01 am
Forum: Personal Investments
Topic: Liquid cash for 5year horizon at 5% apy
Replies: 16
Views: 1646

Liquid cash for 5year horizon at 5% apy

Hello,

I want to keep say $100-200k of easily available money that can be converted to cash quickly maybe with loss of interest or less than 1% loss of principal. But still get above 5%+ apy for 5 years. I see most CDs are paying less than 5% for 5 year terms. This is mostly my sleep well money. Is this doable with some type of investments? :annoyed
by ebeb
Sun Mar 10, 2024 10:38 am
Forum: Personal Investments
Topic: The Three-Fund Portfolio - Which fund should I pick?
Replies: 19
Views: 3202

Re: The Three-Fund Portfolio - Which fund should I pick?

1987-2024:
Vanguard Total Bond Mkt Index $10,000 $62,399 5.05%
Cash $10,000 $30,265 3.02%

But is it worth the extra bond risk if we need safe cash to spend at anytime. Maybe not either or but having both bond+cash is another option. :annoyed
by ebeb
Mon Mar 04, 2024 4:11 am
Forum: Non-US Investing
Topic: Vanguard makes life difficult for NRAs in the UK and India
Replies: 13
Views: 4683

Re: Vanguard makes life difficult for NRAs in the UK and India

Maple wrote: Sun Mar 03, 2024 9:41 pm I am a tax resident of the Philippines with a residual Roth IRA in the USA. Accountants have advised me that the withholdings will be fully recoverable (minus time costs and accountants fees) after filing documents with the IRS.
The problem of roth ira is not with IRS but India tax authority. Since there is a DTAA regime between US and India, if it is not taxed in USA then it will get taxed in India since roth ira is not recognized in India. :shock:
by ebeb
Sun Mar 03, 2024 6:48 am
Forum: Non-US Investing
Topic: Vanguard makes life difficult for NRAs in the UK and India
Replies: 13
Views: 4683

Re: Vanguard makes life difficult for NRAs in the UK and India

How about roth ira, which are supposed to be tax free withdrawal. Will they withhold 30% since India considers all retirement accounts in US same whether pretax or aftertax doesnt matter :annoyed
by ebeb
Fri Mar 01, 2024 4:53 am
Forum: Personal Investments
Topic: Vanguard Investment Question
Replies: 14
Views: 1712

Re: Vanguard Investment Question

If you liquidate everything and it is taxable account you may need to pay huge amount of capital gains tax for all the gains in the past 40 years. Unless stepped up basis happened after death but not sure. There may be better options like non-taxable ACATS transfer to another brokerage. Like other poster said the age of snail mail is long over and not surprised it took 2 weeks for deposit. Unlike Schwab, at Vanguard money is automatically deposited into Federal money market settlement account with currently 5%+ interest so not sure why you need to manually transfer. :confused
by ebeb
Thu Feb 22, 2024 11:39 pm
Forum: Personal Consumer Issues
Topic: Best Value Portable GPS Navigator
Replies: 23
Views: 1689

Re: Best Value Portable GPS Navigator

Reading so many data plan issues, USA seems to be data starved. In another country my $3/month mobile plan used to come with unlimited calling/text and 2.5GB of high speed data per day (not per month). :annoyed
by ebeb
Thu Feb 22, 2024 10:31 am
Forum: Personal Consumer Issues
Topic: Best Value Portable GPS Navigator
Replies: 23
Views: 1689

Re: Best Value Portable GPS Navigator

Disadvantage of Garmin, Tomtom GPS are they will charge you to update the maps later. While cheap smartphone will get updated maps from Google via auto download.
by ebeb
Sun Feb 18, 2024 2:15 am
Forum: Non-US Investing
Topic: Need help getting started with investing [Beginner] [Netherlands]
Replies: 3
Views: 2164

Re: Need help getting started with investing [Beginner] [Netherlands]

I wish someone told me 30 years back about three simple things:
- First decide your risk tolerance or asset allocation, the younger you are the higher risk you should try to take. Example 90% stocks 10% Bonds/Cash.
- Invest in broad market index for stocks and bonds. Playing with individual stocks is risky and can wipe out your money.
- Don't worry about market ups and downs just keep investing according to your asset allocation for the next few decades and wait for the stock market and compounding to do its magic. :o
by ebeb
Wed Feb 14, 2024 11:14 am
Forum: Investing - Theory, News & General
Topic: Vanguard Customer Service Mega-thread
Replies: 1514
Views: 169447

Re: Vanguard Customer Service Mega-thread

I had not called Vanguard few years and was expecting a bad phone experience based on horror stories on this forum. However today I got through in 2min to a live person who very clearly explained how to move an old 401k into my Vanguard i401k account. It basically involves getting a rollover check FBO to my name from the old employer 401k and then fill an online form and send the check to Vanguard i401k. He also provided the needed electronic form. So just thinking if I was lucky or flagship status helped or if Vanguard phone service is improving recently in some departments like i401k. :shock:
by ebeb
Wed Feb 14, 2024 10:04 am
Forum: Personal Investments
Topic: Financial advisor selection
Replies: 15
Views: 1301

Re: Financial advisor selection

Dont go for Ameriprise they are no good in my opinion. Fidelity or Vanguard are better any day. But better to use a hourly charge financial advisor not an AUM based charge adviser. You can search the prior posts on fixed price non-AUM advisors.
by ebeb
Tue Feb 06, 2024 1:39 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard solo 401k to allow incoming rollovers?!
Replies: 57
Views: 10510

Re: Vanguard solo 401k to allow incoming rollovers?!

Does Vanguard solo401k allow rollover of old employers pre-tax 401k funds into the solo401k. :confused
by ebeb
Sun Feb 04, 2024 8:39 am
Forum: Non-US Investing
Topic: voip.ms to call and receive US phone calls while abroad
Replies: 11
Views: 4613

Re: voip.ms to call and receive US phone calls while abroad

I think LINE app doesn't have SIP with DID phone number.
by ebeb
Sun Feb 04, 2024 7:22 am
Forum: Non-US Investing
Topic: voip.ms to call and receive US phone calls while abroad
Replies: 11
Views: 4613

Re: voip.ms to call and receive US phone calls while abroad

I tried voip.ms and Acrobits Groundwire softphone from India and it gives error during registration. The voip.ms techsupport said they don't support voip service from India. Wonder if any Voip service works from India using USA phone number. :annoyed
by ebeb
Tue Jan 02, 2024 11:47 am
Forum: Personal Investments
Topic: BND or Stable fund
Replies: 106
Views: 10938

Re: BND or Stable fund

muffins14 wrote: Tue Jan 02, 2024 8:35 am
It surprises me that people are OK with stocks potentially losing 50-60% in a crash but not OK with bonds losing 10-20%
Yes people expect their risky asset to lose 50% but they dont want their safe money to lose 20%. It makes their plans to use the safe money for unexpected expenses go haywire :shock:
by ebeb
Mon Jan 01, 2024 11:49 pm
Forum: Personal Investments
Topic: BND or Stable fund
Replies: 106
Views: 10938

Re: BND or Stable fund

Stable value fund. Take your volatility/risk on the stock side. Good to know that BH veterans like delamer, lakpr are bringing up the issues with BND. Before 2022 my AA was mostly highrisk: mediumrisk i.e VOO:BND but after the BND crash in 2022, I have decided to have 3 buckets highrisk:mediumrisk:riskfree i.e VOO:BND:TBills . I may get rid of BND completely and increase VOO and TBills. What this achieves is to have a pot of riskfree stable value for sudden large unexpected cash needs without having to sell BND when down. By increasing the highrisk bucket I will compensate some amount of low growth in riskfree bucket which is same as saying take risk on the equity side instead of the stable side of the AA. I expect to increase the riskfree...
by ebeb
Tue Dec 26, 2023 7:01 pm
Forum: Personal Investments
Topic: % in cash?
Replies: 35
Views: 3845

Re: % in cash?

About 13% cash tbills etc, plan to have 5-10 years of expenses in very short term maturity. :confused
by ebeb
Sun Dec 17, 2023 12:50 pm
Forum: Personal Investments
Topic: Changing Asset Alloc to a equity:cash ratio
Replies: 22
Views: 3081

Re: Changing Asset Alloc to a equity:cash ratio

Elysium wrote: Sun Dec 17, 2023 10:20 am
Again you did not read the rest of what I wrote painstakingly, on the inverse relationship between rates and duration, it's about "what-if" and that's exactly what happened.
Yes I did read your post carefully, and it is likely I may not go fully 80:20 VOO:CASH but somewhere in the middle like 80:10:10 VOO:BND:CASH. Basically increasing my "fully safe" money level to avoid selling during huge market downs or else setup a LMP bonds ladder for cash withdrawal per year.
by ebeb
Sun Dec 17, 2023 10:22 am
Forum: Personal Investments
Topic: Changing Asset Alloc to a equity:cash ratio
Replies: 22
Views: 3081

Re: Changing Asset Alloc to a equity:cash ratio

In a greater context: notes and questions "to op only": j :D 1 Are you retired and the interest + dividends of your portfolio are your only income stream? No 5-10 years more to retire. Yes interest + dividends+SS are the only income stream 2 Are you retired with a pension and other income streams and not dependent on your "portfolio" for income? No pension or other income streams 3 Are you working and have an income stream. If so: Is this "portfolio" in tax advantaged space, IE: 401k etc? Or in taxable space? Yes working now. Portfolio is approx 75% in taxable and 25% in tax-advantaged. 4 What percentage of your total portfolio if income bearing assets does this represent? Around 20% safe money BND, TBILL, MM ...
by ebeb
Sun Dec 17, 2023 10:05 am
Forum: Personal Investments
Topic: Changing Asset Alloc to a equity:cash ratio
Replies: 22
Views: 3081

Re: Changing Asset Alloc to a equity:cash ratio

This is primarily due to my incorrect assumption that BND wont fall more than 10% anytime while as we know it had 20% downturn recently. There is a ton of information on the wiki to read and learn, it seems many don't and follow just past performance to assume things that aren't true such as BND cannot fall more than 10%. Where would you get such ideas from :oops: Yes there is a ton of information such as from Jan 1987 - Dec 2021 the max drawdown on BND was -5.86% as per portfoliovisualizer. Portfolio Initial Balance Final Balance CAGR Stdev Best Year Worst Year Max. Drawdown Total US Bond Market $10,000 $69,231 5.68% 3.79% 18.18% -2.66% -5.86% So any regular Joe in 2021 would perhaps have thought -10% would be max and not have anticipated...
by ebeb
Sat Dec 16, 2023 11:28 pm
Forum: Personal Investments
Topic: Changing Asset Alloc to a equity:cash ratio
Replies: 22
Views: 3081

Re: Changing Asset Alloc to a equity:cash ratio

retired@50 wrote: Sat Dec 16, 2023 10:51 pm
ebeb wrote: Sat Dec 16, 2023 9:25 pm What are the downsides of such an Asset Allocation with a fixed cash equivalent portion. :o
The only downside I see is that cash usually doesn't keep up with inflation.
I agree cash doesn't keep up. That is why I am keeping 5 years expense in the cash equivalent part of AA and letting the VOO equity part continue to increase 80% or more to take higher risk on the equity side to avoid lowering my risk/return too much. :D
by ebeb
Sat Dec 16, 2023 9:25 pm
Forum: Personal Investments
Topic: Changing Asset Alloc to a equity:cash ratio
Replies: 22
Views: 3081

Changing Asset Alloc to a equity:cash ratio

Hello Experts, While I had been following a bogleheads VOO:BND type portfolio for the last few years I am in the process of changing this to a VOO:(TBILL+Moneymkt) portfolio. This is primarily due to my incorrect assumption that BND wont fall more than -10% anytime while as we know it had -18% drawdown recently. In addition instead of a fixed AA like 80:20, I would like to have 5 years of living expense saved in safe TBILL+Moneymkt and the rest in VOO, may even increase to 5-10 years cash equivalent in retirement. So that say we have a 50% market crash, possibly 5 years later it may recover at least 50% if not fully so wont need to sell much from equities when down unless we have a Japan type crash. It is possible this will make the VOO par...
by ebeb
Sat Dec 16, 2023 4:02 pm
Forum: Personal Investments
Topic: For Those Who Are Retired Do You Keep Cash Accounts
Replies: 57
Views: 12576

Re: For Those Who Are Retired Do You Keep Cash Accounts

Option 3: I plan to keep 5 years of expenses in short-term treasuries/moneymkt for withdrawal during market crash or any urgent cash needs. Rest will be in equities.
by ebeb
Tue Dec 12, 2023 4:49 pm
Forum: Personal Investments
Topic: What returns should i expect using an advisor?
Replies: 64
Views: 13119

Re: What returns should i expect using an advisor?

ee_guy wrote: Tue Dec 12, 2023 4:42 pm The math is not right. With no advisor and $1M, 4% is 40K. With an advisor, $1M - 1% = 990,000. 4% of that is $39,600. You have exactly 1% less with an advisor - not 25% less of the income. If the portfolio is averaging 4% a year gain over years (pretty bad), then a 1% fee is a BIG deal.
But if you withdraw $39600 and pay $10000 to adviser you are in effect paying 25% of your annual income to the advisor so instead of enjoying $49600 you are enjoying only $39600 per year. :annoyed
by ebeb
Tue Dec 12, 2023 2:51 pm
Forum: Personal Investments
Topic: Purchasing TIPS on secondary market
Replies: 22
Views: 2727

Re: Purchasing TIPS on secondary market

Given two TIPS in secondary market with same maturity date, is buying the one with the highest YTM value the right choice? Or any other factors to look at. :confused
by ebeb
Tue Dec 12, 2023 1:29 pm
Forum: Personal Investments
Topic: What returns should i expect using an advisor?
Replies: 64
Views: 13119

Re: What returns should i expect using an advisor?

Enter your asset allocation in https://www.portfoliovisualizer.com/ backtest asset allocation and see what is the market return for a specific time period. Then compare with your returns.
by ebeb
Sun Dec 10, 2023 3:30 pm
Forum: Personal Investments
Topic: How much are you down\up from the top set in 2021?
Replies: 79
Views: 12092

Re: How much are you down\up from the top set in 2021?

tetractys wrote: Sun Dec 10, 2023 11:15 am Down many thousands—having morning coffee and enjoying the view. The sun’s Southeast, there’s clouds over the mountains, and a light fog over the sea.
where?
by ebeb
Sat Dec 09, 2023 7:51 pm
Forum: Personal Investments
Topic: Asset transfer fraud protection
Replies: 111
Views: 11600

Re: Asset transfer fraud protection

This is one reason why I login into my two brokerage accounts almost every day to check the balances, I know I lose few minutes every day but its ok for peace of mind. :annoyed
by ebeb
Sat Dec 09, 2023 6:41 pm
Forum: Non-US Investing
Topic: We are retiring!
Replies: 4
Views: 3483

Re: We are retiring!

Since bonds tend to go down in value as interest rate increases, when I retire I will keep significant amount in cash type account like in USA money market or short term treasuries where there is no chance of principal losses like we saw -20% loss in bond funds in 2022-23.
by ebeb
Tue Dec 05, 2023 8:59 pm
Forum: Personal Investments
Topic: Advice on the conservative part of my portfolio
Replies: 10
Views: 1018

Re: Advice on the conservative part of my portfolio

You are not alone, I am halfway out of BND into treasuries. But am increasing my AA with stocks little bit to compensate for lower risk of tbills so my risk/return dont fall too much. :?
by ebeb
Sun Dec 03, 2023 12:56 pm
Forum: Personal Investments
Topic: Asking Portfolio Questions - Help Needed!
Replies: 22
Views: 2458

Re: Asking Portfolio Questions - Help Needed!

I am thinking of further simplifying my portfolio by putting my AA risky pool in VOO and my safe pool in moneymkt/tbills. In this case I would consider having min 5years and max 10years annual expense in safe pool say $50k/year * 5 years to $50*10years =$250k to $500k. I am trying to decide if $250k or $350 or $500k would be optimal safe money. This will also help to satisfy any sudden large cash requirements like medical or housing expenses in future. All other money will keep going into VOO even if the AA will keep increasing towards stocks over time, any suggestions. :confused
by ebeb
Fri Dec 01, 2023 3:39 pm
Forum: Investing - Theory, News & General
Topic: At what point does BND become attractive?
Replies: 141
Views: 24172

Re: At what point does BND become attractive?

BND seems to be looking sunny last few weeks with Feds hinting at end of rate increases. Was thinking of selling BND to move to money market for less risk but maybe worth waiting for some more price increase. :annoyed
by ebeb
Thu Nov 23, 2023 9:51 am
Forum: Non-US Investing
Topic: Roth IRA withdrawal as a non-US taxpayer
Replies: 4
Views: 3359

Re: Roth IRA withdrawal as a non-US taxpayer

My Microsoft ChatGPT tells me:
"As of my last update in 2021, there isn’t a formal Double Tax Avoidance Agreement (DTAA) between Brazil and the USA. However, the Brazilian authorities have officially recognized the reciprocity of tax treatment with the United States. This means that a tax paid in one country might be offset against the income tax due in the other country, or vice-versa, if conditions are met." :shock:
by ebeb
Wed Nov 22, 2023 11:27 am
Forum: Personal Investments
Topic: Best time to draw money from HSA
Replies: 42
Views: 5244

Re: Best time to draw money from HSA

If you start to live abroad, some of the countries tax any withdrawal from tax-deferred account like 401k/IRA/HSA as a resident at least the capital gains amount as they don't recognize the tax free withdrawal in HSA/ROTH. So makes sense to withdraw tax free while living inside USA. :annoyed
by ebeb
Mon Nov 20, 2023 10:37 pm
Forum: Personal Investments
Topic: Is it time to sale bond mutual funds and take the loss
Replies: 28
Views: 4725

Re: Is it time to sale bond mutual funds and take the loss

lakpr wrote: Mon Nov 20, 2023 6:43 pm
Also with CDs, at the end of the maturity term, you are guaranteed to get the principal + interest earned; with bond funds, even if you hold your money in the fund until the "average duration" of the fund, you are not guaranteed to recover your principal.
I am beginning to think that bond funds are a bad idea someone came up with, since you can never know the YTM of bond funds until you sell them. They don't behave like bonds where you know the YTM before buying. :annoyed
by ebeb
Sun Nov 19, 2023 4:28 pm
Forum: Personal Investments
Topic: Sell BND in taxable and buy TBills in ira/401k.
Replies: 1
Views: 484

Sell BND in taxable and buy TBills in ira/401k.

Hello Experts,

I need to move few hundred thousand BND in taxable account to more tax efficient bond location in IRA/401k. Which means sell same amount of VOO in IRA/401k and buy in taxable a/c with the BND sold amount. Then buy same amount BND in IRA/401k with the VOO sold amount. I will also realize $100k Taxloss on BND. However instead of BND I prefer to buy 2-3 year Treasuries about 5% now. Any problem with buying TBonds or TIPS instead of BND probably less risk/return ? :confused
by ebeb
Fri Nov 17, 2023 1:24 pm
Forum: Personal Investments
Topic: Asking Portfolio Questions - Help Needed!
Replies: 22
Views: 2458

Re: Asking Portfolio Questions - Help Needed!

Two open suggestions, below, that I made to your 2022 review post. It is likely more tax efficient to contribute some of the $25k in Taxable contributions to a Roth IRA each year via a backdoor Roth. Looking ahead long term, the cumulative tax savings over your life time may be significant. Plus reducing taxable investment income in retirement may lower your out-of-pocket costs for ACA healthcare, if needed, and Medicare. Thanks @HomeStretch, I did consider backdoor Roth and spoke to advisor Mark Zoril. Since I have traditional IRA, this requires me to empty out the IRA first by moving to 401k before doing backdoor. It was not going to be easy to do, so left it at that. May still work on this again as todo. Besides the issue with moving IR...
by ebeb
Fri Nov 17, 2023 12:46 pm
Forum: Non-US Investing
Topic: Can I own and operate a S-CORP as a US citizen residing in India?
Replies: 9
Views: 2873

Re: Can I own and operate a S-CORP as a US citizen residing in India?

Please review the https://www.irs.gov/pub/irs-pdf/fw9.pdf
Part II Certification
3. I am a U.S. citizen or other U.S. person (defined below);

But probably best to contact legal professional or do further research on this.
by ebeb
Thu Nov 16, 2023 9:03 pm
Forum: Non-US Investing
Topic: The definite flowchart for 'should I put money in a US account if I'm not sure to retire in the US'
Replies: 21
Views: 7620

Re: The definite flowchart for 'should I put money in a US account if I'm not sure to retire in the US'

anagram wrote: Thu Nov 16, 2023 8:05 pm Why are you concerned at being caught for living abroad and keeping your assets in the country you live in? Maybe I am missing some legalities here. If so I would be interested to know what those are. Why are you thinking of moving your assets abroad?
Just trying to figure out if USA has any rules against transferring larger amounts abroad gradually over many years. The destination country banking and financial markets are not as developed as USA and more risky and high inflation. So prefer to keep the money in USA as long as possible. But due to various family and other expenses abroad, all money will eventually move abroad. :)
by ebeb
Mon Nov 13, 2023 12:57 pm
Forum: Personal Investments
Topic: Retirement withdrawals done evenly or avoid selling stocks when market is down?
Replies: 54
Views: 6906

Re: Retirement withdrawals done evenly or avoid selling stocks when market is down?

GaryA505 wrote: Mon Nov 13, 2023 12:38 pm I'm ready for people to point out flaws in this scheme. Take your best shot! :P
More a question, if both stocks and bonds are down -20% at same time, wouldn't it help to have a 0% down safe pool like moneymkt/tbills to dip into and let the stock/bonds recover for a year or two. :confused
by ebeb
Mon Nov 13, 2023 12:48 pm
Forum: Personal Investments
Topic: Retirement withdrawals done evenly or avoid selling stocks when market is down?
Replies: 54
Views: 6906

Re: Retirement withdrawals done evenly or avoid selling stocks when market is down?

spectec wrote: Mon Nov 13, 2023 12:15 pm The risky pool is your equities allocation and the safe pool is your fixed income allocation.
With the -20% drawdown seen in fixed income like BND recently, I am thinking even safer like moneymkt/short t-bills for the safe-pool. :wink:
by ebeb
Mon Nov 13, 2023 12:02 pm
Forum: Personal Investments
Topic: Retirement withdrawals done evenly or avoid selling stocks when market is down?
Replies: 54
Views: 6906

Re: Retirement withdrawals done evenly or avoid selling stocks when market is down?

I am thinking more along the lines of having two pools of money: risky pool and a safe-money pool. The risky pool is mostly equities and safe pool is things like moneymkt/treasuries with low volatility for withdrawal anytime. The safe pool would be constantly replenished with say about 2-3 years of expenses to survive during market downturns which usually recover in 2-3 years. But then your CAGR would be dragged down a bit due to the safe-pool but at least you don't have to sell from the risky pool during downturns until you give it some time to recover. :annoyed
by ebeb
Sun Nov 12, 2023 12:31 pm
Forum: Personal Investments
Topic: Asking Portfolio Questions - Help Needed!
Replies: 22
Views: 2458

Re: Asking Portfolio Questions - Help Needed!

If that is correct, you sell BND in taxable and buy BND (or similar) in the other accounts. You will have harvested a very valuable loss without actually loosing anything or changing your asset allocation. You will also have gotten the tax-inefficient holding out of taxable, thus eliminating unnecessary taxes. The losses carry over from year to year and can also be used to offset gains at any time until the losses are gone. All of this is a win-win. Dragging this out over years is not helpful. There is no need to sell similar VOO capital gains, but you could do that if you want. It is called tax gain harvesting. Ok makes sense. Selling all taxable BND and buying similar in ira/401k will save lot on taxes and capture TLH for future.
by ebeb
Sun Nov 12, 2023 12:09 pm
Forum: Personal Investments
Topic: Asking Portfolio Questions - Help Needed!
Replies: 22
Views: 2458

Re: Asking Portfolio Questions - Help Needed!

Your asset location is not optimal in my mind. I suggest that you take the taxable bond fund out of taxable. Hold bonds in the TIRA. Hold more bonds in the 401k. If you must hold bonds in taxable, it should be a tax-exempt bond fund such as VWIUX (Vanguard Intermediate-Term Tax-Exempt Fund Admiral Shares). Change the Roth IRA and 401k from VOO to large cap index or total stock index to avoid wash sales. Agree Bonds are not efficient in taxable but some say higher tax-deferred equities growth helps. This is incorrect in my opinion. Stocks are better held in taxable than tax-deferred. In taxable, the long term capital gains are taxed at favorable rates. In the 401k, the gains are taxed at higher ordinary tax rates. This does not mean that st...
by ebeb
Sun Nov 12, 2023 11:42 am
Forum: Personal Investments
Topic: Asking Portfolio Questions - Help Needed!
Replies: 22
Views: 2458

Re: Asking Portfolio Questions - Help Needed!

ebeb, it might be helpful to understand why you didn't follow the advice you got in 2022, and are back for more advice. What are your short and long term financial goals? You mentioned possibly buying a house for example. 1. Fund placement: Most bogleheads suggest that you look at your portfolio as one big bucket of assets, regardless of which kind of account the money is in. So you can do things (as suggested) like putting your desired allocation of bonds completely into your 401k and other tax advantaged accounts. 2. Money is fungible, so if you want to buy a house you could sell some VOO in your taxable account to get the money for the downpayment, then in your 401k you can sell some BND and buy VOO instead. In that way you have effecti...
by ebeb
Sun Nov 12, 2023 11:06 am
Forum: Personal Investments
Topic: Asking Portfolio Questions - Help Needed!
Replies: 22
Views: 2458

Re: Asking Portfolio Questions - Help Needed!

retiredjg wrote: Sun Nov 12, 2023 10:55 am Why spread it out over so many years? Why not just sell all the BND now?
If I sell all BND, I will incur over 100k+ loss now. Will need to sell similar VOO capital gains or else $3k per year for many years to offset tax loss. Was taking a slower approach to see if BND recovers fast with feds easing up on rates.
by ebeb
Sun Nov 12, 2023 10:43 am
Forum: Personal Investments
Topic: Asking Portfolio Questions - Help Needed!
Replies: 22
Views: 2458

Re: Asking Portfolio Questions - Help Needed!

Two open suggestions, below, that I made to your 2022 review post. It is likely more tax efficient to contribute some of the $25k in Taxable contributions to a Roth IRA each year via a backdoor Roth. Looking ahead long term, the cumulative tax savings over your life time may be significant. Plus reducing taxable investment income in retirement may lower your out-of-pocket costs for ACA healthcare, if needed, and Medicare. It’s likely more tax efficient to hold 100% BND in your 401k and traditional IRA. Reduce BND in your Taxable account to maintain/reach your desired overall asset allocation. Thanks @HomeStretch, I did consider backdoor Roth and spoke to advisor Mark Zoril. Since I have traditional IRA, this requires me to empty out the IR...