Search found 17 matches

by treebeard_
Thu Mar 26, 2020 8:32 am
Forum: Personal Investments
Topic: Please help me understand wash sales
Replies: 11
Views: 366

Re: Please help me understand wash sales

Furthermore, not often noted is that any temporarily disallowed loss from the wash sale is kept until the shares the created the wash sale are sold whereupon the loss is allowed --- as long as the shares the created the wash sale are also in a taxable account. Yup, got this from my reading online. ...
by treebeard_
Thu Mar 26, 2020 8:21 am
Forum: Personal Investments
Topic: Please help me understand wash sales
Replies: 11
Views: 366

Re: Please help me understand wash sales

Example: You sell your first lot of VTSAX, but keep the 2nd lot that was created by the automated dividend reinvestment. That would create a wash sale in the amount of the number of the 2nd lot's shares. Indeed, Vanguard.com will probably indicate this small wash sale and take care of it for you wh...
by treebeard_
Thu Mar 26, 2020 8:15 am
Forum: Personal Investments
Topic: Please help me understand wash sales
Replies: 11
Views: 366

Re: Please help me understand wash sales

I think I got it now. But, could I get an example of a "30 days before" wash sale? Edit: wiki answers my Q. (If you use Specific identification of shares, you can avoid the effect of a wash sale on a reinvestment in the last 30 days by selling those shares; even if your brokerage says that...
by treebeard_
Thu Mar 26, 2020 8:07 am
Forum: Personal Investments
Topic: Please help me understand wash sales
Replies: 11
Views: 366

Re: Please help me understand wash sales

Thanks. I have read the wiki, but still confused about my described scenario, and what 'replacement shares' are. Also, I just noticed the dividend was reinvested yesterday. I cancelled the VTSAX sell order until I get some more clarity. I now see 2 buy lots for VTSAX, one with all of the losses from...
by treebeard_
Thu Mar 26, 2020 8:00 am
Forum: Personal Investments
Topic: Please help me understand wash sales
Replies: 11
Views: 366

Please help me understand wash sales

Hi Bogleheads, First off I want to say thanks for all the help I've received in the past, I now have a good headstart on investing, and understand various asset classes / portfolios / index investing much better now. I've got a small amount of funds on VTSAX in a taxable account, with capital losses...
by treebeard_
Sun Nov 03, 2019 3:14 pm
Forum: Personal Investments
Topic: Roth/Traditional Allocation Question
Replies: 37
Views: 1675

Re: Roth/Traditional Allocation Question

That was an incredibly helpful view of all of the perspectives! Thank you. This is the decision that I have no way of knowing at the moment: If you expect to retire early, lean more traditional. You can reap the tax deferral now, and have many years of converting the balance to Roth a little at a ti...
by treebeard_
Sun Nov 03, 2019 2:53 pm
Forum: Personal Investments
Topic: Roth/Traditional Allocation Question
Replies: 37
Views: 1675

Re: Roth/Traditional Allocation Question

Scenario 1: Continue to fill up mainly my Roth until my income pushes me into an even higher bracket than it is now, and then continue with the Traditional 401k until it reaches a balance that would keep my retirement income lower than the marginal tax rate at the time of putting into the trad 401k....
by treebeard_
Sun Nov 03, 2019 1:18 pm
Forum: Personal Investments
Topic: Roth/Traditional Allocation Question
Replies: 37
Views: 1675

Re: Roth/Traditional Allocation Question

I agree with KlangFool, I would fill up traditional 401k with expected income up to 1 million in retirement ( i know its a lot of assumptions on returns) and max out Roth iras all the years including backdoors if needed. Then think about Roth 401k. You can start worrying about size of your tax defe...
by treebeard_
Sun Nov 03, 2019 12:47 pm
Forum: Personal Investments
Topic: Roth/Traditional Allocation Question
Replies: 37
Views: 1675

Re: Roth/Traditional Allocation Question

5) Lastly, I would invest as much as possible in your Roth accounts as long as possible. If your income levels eliminate Roths as an option, then I would split between Traditional and taxable. Under current tax law, taxable accounts treat long term capital gains more favorable than income taxes rea...
by treebeard_
Sun Nov 03, 2019 12:45 pm
Forum: Personal Investments
Topic: Roth/Traditional Allocation Question
Replies: 37
Views: 1675

Re: Roth/Traditional Allocation Question

Thanks for the quick replies everyone! I understand that you cannot speculate on tax rates on this forum, no one can! We can't predict the future. Though, I do have a high savings rate and can start to put away a lot more now that debts are paid off. My main question is this: I definitely want a mix...
by treebeard_
Sun Nov 03, 2019 11:59 am
Forum: Personal Investments
Topic: Roth/Traditional Allocation Question
Replies: 37
Views: 1675

Roth/Traditional Allocation Question

Hi Bogleheads, I had a question I would like to get some insight into. I am in my first year of working, and have a MAGI of ~120k, and expect that to go up. I have been contributing to both my Roth 401k (maxed out + 7.5% company match which is trad.) and Roth IRA (maxed out for 2018 and 2019), but w...
by treebeard_
Sun Feb 10, 2019 3:17 pm
Forum: Personal Investments
Topic: Vanguard Roth IRA advice
Replies: 17
Views: 2082

Re: Vanguard Roth IRA advice

If I already filed my 2018 tax return, should I contribute to the 2018 IRA? Yes, and while you are at it, start recording how every penny gets into Roth IRA by year. Don't worry about earnings, just what you put in. Right now that will only be direct contributions. Later, it may include other thing...
by treebeard_
Sun Feb 10, 2019 2:56 pm
Forum: Personal Investments
Topic: Vanguard Roth IRA advice
Replies: 17
Views: 2082

Re: Vanguard Roth IRA advice

retiredjg wrote: Sun Feb 10, 2019 1:51 pm Yes, go ahead and make your 2018 contribution to Roth IRA as you can (but prior to tax day). Then start on your 2019 contribution.
If I already filed my 2018 tax return, should I contribute to the 2018 IRA?
by treebeard_
Sun Feb 10, 2019 2:42 pm
Forum: Personal Investments
Topic: Vanguard Roth IRA advice
Replies: 17
Views: 2082

Re: Vanguard Roth IRA advice

You can certainly use a VG target retirement fund in the Roth IRA as well, but if you have a decent bond fund in the 401k, maybe use that for 10% or so of your overall portfolio, and put the rest in stock index funds, allocating as you see fit between U.S. and international (I'd recommend anywhere ...
by treebeard_
Sun Feb 10, 2019 2:31 pm
Forum: Personal Investments
Topic: Vanguard Roth IRA advice
Replies: 17
Views: 2082

Re: Vanguard Roth IRA advice

At 22, having a very high stock allocation is exactly right in my opinion. As Bernstein has said, the true risk for young investors of stocks is remarkably low, because it only manifests over <30 year timeframes. (Bernstein also says the risk of stocks is “toxic” for near-retirees, but you are a lo...
by treebeard_
Sun Feb 10, 2019 2:27 pm
Forum: Personal Investments
Topic: Vanguard Roth IRA advice
Replies: 17
Views: 2082

Re: Vanguard Roth IRA advice

I would suggest you use something like 80% stocks (split however you like) and 20% bonds in the Roth IRA. This will give you the opportunity to see how each asset allocation (stock to bond ratio) acts and feels in an extended market downturn. Great, thank you! I'll take this advice. It will give me...
by treebeard_
Sun Feb 10, 2019 1:24 pm
Forum: Personal Investments
Topic: Vanguard Roth IRA advice
Replies: 17
Views: 2082

Vanguard Roth IRA advice

Hey Bogleheads, Just started my career last year and wanted your advice on retirement savings / investing plans. I'm currently 22, single, and putting the maximum $19,000 a year into my 401k (BTC Lifepath 2060 L target retirement date fund), ER: 0.09%. I just opened a Roth IRA at Vanguard, and I'm d...