Search found 12798 matches

by retired@50
Wed Mar 27, 2024 8:28 pm
Forum: Personal Investments
Topic: Fidelity Wealth Mgmt Advisor vs. Fidelity Target Fund
Replies: 17
Views: 1404

Re: Fidelity Wealth Mgmt Advisor vs. Fidelity Target Fund

BettyBon wrote: Wed Mar 27, 2024 8:25 pm :happy Thank you
You're welcome.

If you'd like to read a somewhat humorous look at the financial industry read the book by Fred Schwed called "Where Are The Customer's Yachts"?
Link: https://www.goodreads.com/book/show/288 ... Zrk&rank=2

Check your local public library for a copy.

Regards,
by retired@50
Wed Mar 27, 2024 8:15 pm
Forum: Personal Investments
Topic: Fidelity Wealth Mgmt Advisor vs. Fidelity Target Fund
Replies: 17
Views: 1404

Re: Fidelity Wealth Mgmt Advisor vs. Fidelity Target Fund

No response from financial advisor yet but a member of his team emailed to show me that if I had my money still in the Target Fund last year I would've made $3,000 less vs what the returns the financial advisor got, net fees, so now I'm not sure if I should still cancel the advisor and put everything back into Target Fund? This ^^^ is short term thinking. Will they guarantee you a $3,000 premium to the target date fund each year until you die? Of course not. You could live another 40 years. Indexing wins over active management over the long term. I expect your adviser will be long retired in 40 years, enjoying part of your portfolio he took in fees while he smokes cigars on the back of a boat (his clients purchased for him) in the Greek is...
by retired@50
Wed Mar 27, 2024 6:24 pm
Forum: Personal Investments
Topic: How would you change my 401k?
Replies: 46
Views: 1671

Re: Starting to regret hiring Facet

Here is how Facet suggested I change my allocations: 33% VIIIX Vanguard Institutional Index Instl PI (0.02%) 19% VTMNX Vanguard Developed Markets Index Instl (0.05%) 13% VBTIX Vanguard Total Bond Market Index I (0.035%) 13% RWMHX American Funds Washington Mutual R5E (0.420%) 5% PTTAX PIMCO Total Return A (0.83%) 4% VFTNX Vanguard FTSE Social Index I (0.12%) 4% VSCIX Vanguard Small Cap Index I (0.04%) 2% VEMIX Vanguard Emerging Mkts Stock Idx Instl (0.10%) 2% VASVX Vanguard Selected Value Inv (0.38%) 1% POAGX Primecap Odyssey Aggressive Growth (0.660%) 1% WAAEX Wasatch Small Cap Growth Investor (1.150%) 1% RYSEX Royce Small Cap Special Equity Invmt (1.210%) 1% RNWGX American Funds New World R6 (0.570%) 1% VGSNX Vanguard Real Estate Index In...
by retired@50
Wed Mar 27, 2024 5:52 pm
Forum: Personal Investments
Topic: 529 Asset Allocation - how much to value tdfs?
Replies: 1
Views: 218

Re: 529 Asset Allocation - how much to value tdfs?

VanityPlate wrote: Wed Mar 27, 2024 2:41 pm
So, my question is, how do you handle asset allocation in a 529
I'd use the low expense ratio funds, and then I'd just copy what Vanguard does in their 529 allocation by year...

See link: https://investor.vanguard.com/accounts- ... portfolios

If you expand each of the different time periods in the link, you'll start to see the differences in the allocations over time. Just copy it down to create your own glide path.

Regards,
by retired@50
Wed Mar 27, 2024 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: Which bank for checking account
Replies: 14
Views: 1035

Re: Which bank for checking account

SmileyFace wrote: Wed Mar 27, 2024 9:33 am Neither - I would look at local Credit Unions ...
Same here. I've been using a credit union for quite a while.

Regards,
by retired@50
Wed Mar 27, 2024 5:39 pm
Forum: Personal Finance (Not Investing)
Topic: How to use Capital Loss Carryover- any updates?
Replies: 11
Views: 702

Re: How to use Capital Loss Carryover- any updates?

Merry wrote: Wed Mar 27, 2024 4:46 pm ... I can't think of any other ways to reduce the carryover faster. Ideas?
I wouldn't think about it at all.

Consider it a lifetime $3,000 deduction and leave it at that.

Regards,
by retired@50
Wed Mar 27, 2024 5:30 pm
Forum: Investing - Theory, News & General
Topic: AVUV vs SCHG
Replies: 15
Views: 910

Re: AVUV vs SCHG

adave wrote: Wed Mar 27, 2024 4:57 pm Which one is on sale?
Both are certainly available for purchase, but AVUV would appear to be the better bargain at the moment.

Regards,
by retired@50
Wed Mar 27, 2024 5:10 pm
Forum: Forum Issues and Administration
Topic: Personal Investments vs. Investing categories
Replies: 5
Views: 241

Re: Personal Investments vs. Investing categories

bogswenbern wrote: Wed Mar 27, 2024 5:01 pm ... No idea why.
Because data from Robert Schiller and Ken French isn't something you can invest in.

Regards,
by retired@50
Wed Mar 27, 2024 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?
Replies: 53
Views: 2760

Re: Why does a discussion of Financial Planning almost always turns into buying Whole life insurance?

canbonbon wrote: Wed Mar 27, 2024 3:24 pm I get the whole commission aspect. And I am also willing to drop these guys and not waste my time with them. But can you offer me a better alternative? Because in their scenario, my heir gets over 4 or 5MM on a 2MM investment and all of that tax free. Of which only 50% was given to the Insurance company. I have not been able to find the flaw in that logic. I am sure its there in it, but I am not able to find it yet.
Send a PM to user Stinky. If there's a flaw to be found, he'll find it.

Regards,
by retired@50
Wed Mar 27, 2024 1:17 pm
Forum: Investing - Theory, News & General
Topic: Never selling shares
Replies: 57
Views: 4241

Re: Never selling shares

adave wrote: Tue Mar 26, 2024 5:20 pm ... is max consumption in retirement the goal?
It's not my goal. Never has been. I don't really like shopping for new stuff.

Regards,
by retired@50
Wed Mar 27, 2024 1:13 pm
Forum: Personal Investments
Topic: How do YOU integrate cognitive decline with investment policy?
Replies: 20
Views: 1534

Re: How do YOU integrate cognitive decline with investment policy?

eschen42 wrote: Wed Mar 27, 2024 12:54 pm ...
"Power of attorney"-ish (or "Trustee") - find someone to who you trust to take over (legally) when the task becomes "too much" (too hard or too unpleasant)
...
I look forward to hearing your thoughts and strategies.
This ^^^.

I've already started the grooming of the younger generation.

Alternatively, settle on a one-fund portfolio, like a balanced index fund or a retirement income fund.

Regards,
by retired@50
Wed Mar 27, 2024 12:47 pm
Forum: Personal Investments
Topic: 403b: changing allocation — looking for advice: Sell small cap as I make change?
Replies: 1
Views: 145

Re: 403b: changing allocation — looking for advice: Sell small cap as I make change?

I'd let the small cap fund ride. In other words, hold on to it.

Regards,
by retired@50
Wed Mar 27, 2024 11:02 am
Forum: Personal Investments
Topic: Fidelity 401k what to invest in?
Replies: 16
Views: 1202

Re: Fidelity 401k what to invest in?

Penguin97 wrote: Wed Mar 27, 2024 10:58 am
As far as the Roth IRA goes I was planning on splitting the money between these funds:

fzrox, fskax, fzlix, fxaix, and fxnax

And in my brokerage account:

Fzrox, fskax, fzlix, fxaix

Is this an acceptable solution? I know the book mentions a three stock portfolio.

I really appreciate all the advice. Apologies for the novel!
I'd suggest you keep it simple.

Just use the green funds above. If you want more bonds, add them to the 401k so that the Roth and taxable accounts can be ALL stock.

More details on this line of thinking here: https://www.bogleheads.org/wiki/Tax-eff ... _placement

Regards,
by retired@50
Wed Mar 27, 2024 10:57 am
Forum: Personal Investments
Topic: 403B Asset allocation switch up
Replies: 2
Views: 144

Re: 403B Asset allocation switch up

RAW20 wrote: Wed Mar 27, 2024 10:47 am ... I would like my asset allocation to be closer to 90/10 as I am 33 years old. My thoughts on the reallocation are 67.5% VFIAX 10% VBTLX 27.5% 22.5% VTIAX. Thoughts on this?
If you change the VBTLX number from 27.5 to 10 you'll be all set.

Otherwise, your numbers add to 117.5% :shock:

Regards,
by retired@50
Wed Mar 27, 2024 10:50 am
Forum: Personal Investments
Topic: Muni break-even tax rate
Replies: 12
Views: 1405

Re: Muni break-even tax rate

Besides break-even tax rate, munis keep your MAGI down. This is important if you're on Medicare as its rates have MAGI break points for higher premiums. See link. https://www.bogleheads.org/wiki/Modified_Adjusted_Gross_Income From the wiki page linked above. This MAGI is defined in 42 U.S.C. 1395r(i)(4), from the Social Security Act §1839: (4) Modified adjusted gross income.- (A) In general.—For purposes of this subsection, the term “modified adjusted gross income” means adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986)— (i) determined without regard to sections 135, 911, 931, and 933 of such Code; and (ii) increased by the amount of interest received or accrued during the taxable year which is exempt fr...
by retired@50
Wed Mar 27, 2024 10:45 am
Forum: Personal Finance (Not Investing)
Topic: 401k Roth vs. Pre-Tax...again
Replies: 6
Views: 384

Re: 401k Roth vs. Pre-Tax...again

... And finally, and what I find a bit confusing is that usually discussions of roth/pre-tax never mention capital gains rates, but rather just compare across income tax brackets. In a roth scenario, aren't you paying income tax today, in lieu of paying capital gains taxes tomorrow? For pre-tax money, when it's finally withdrawn during retirement, it will be seen as ordinary income, not capital gains. The essence of the question of Traditional versus Roth relies on your estimate of your future income tax rate during retirement, presumably, when you've stopped working. Maybe think about it this way... Look at your IRS Form 1040, Line 1a. When that line reads $0 in the future, what do you think your marginal income tax rate will be? At the 3...
by retired@50
Wed Mar 27, 2024 10:17 am
Forum: Personal Investments
Topic: Turning 30, Investment Checkup / Simplification
Replies: 17
Views: 1350

Re: Turning 30, Investment Checkup / Simplification

tonescarp wrote: Wed Mar 27, 2024 10:16 am
retired@50 wrote: Wed Mar 27, 2024 10:01 am Buying a bond fund (FXNAX) in taxable doesn't sound right to me.
You are correct. I had my "AX's" mixed up, meant to say "FSKAX" for the total market index fund.
retired@50 wrote: Wed Mar 27, 2024 10:01 am Congratulations on getting away from "the guys". You'll be richer for it.
Thanks!
Good for you.

Regards,
by retired@50
Wed Mar 27, 2024 10:14 am
Forum: Personal Investments
Topic: [Wait for new Dept. of Labor Financial Advisor Protections?]
Replies: 9
Views: 732

Re: [Wait for new Dept. of Labor Financial Avisor Protections?]

dagsboro wrote: Wed Mar 27, 2024 10:02 am If I want to best protect my spouse from inferior financial advice, should I wait until proposed new U.S. Dept. of Labor Financial Adviser rules and regulations are instituted? They reportedly strengthen fiduciary requirements and will apply to those recommending and selling securities and annuities.
I'd suggest you teach your spouse the basics of investing.

Even the most disinterested people can comprehend a 3 fund portfolio. Find a decent CPA if you need help with income tax preparation.

Regards,
by retired@50
Wed Mar 27, 2024 10:01 am
Forum: Personal Investments
Topic: Turning 30, Investment Checkup / Simplification
Replies: 17
Views: 1350

Re: Turning 30, Investment Checkup / Simplification

tonescarp wrote: Wed Mar 27, 2024 9:50 am
To summarize (Please correct me if I am wrong):
1. Sell all current taxable accounts
2. Max out IRA contributions
3. Increase contributions to 401k's so they hit yearly max
4. Put the leftover taxable money into my own Fidelity brokerage account (i.e. FXNAX)
5. Sell from new taxable account as needed to continue hitting tax-advantaged maxes

Does that sound like the correct approach?
Buying a bond fund (FXNAX) in taxable doesn't sound right to me.

Typically, you'd want to hold your bond funds in a tax-deferred account.

More details here: https://www.bogleheads.org/wiki/Tax-eff ... _placement

Congratulations on getting away from "the guys". You'll be richer for it.

Regards,
by retired@50
Wed Mar 27, 2024 9:54 am
Forum: Personal Investments
Topic: Future Guidance
Replies: 4
Views: 451

Re: Future Guidance

... I've also got 12k in IBM stock that an uncle bought be when I was little at Compushare. ... Some of me wanted to sell the IBM, and use that as a starting point and maybe open a second brokerage account at Fidelity or somewhere and use that money. I wanted to track it's growth seperate from other things. Don't know a good way to do that without lumping it into my current investments. It's been a while since I've dealt with Compushare, but I don't recall any groovy interface or website to track the value of shares. You could try to find out the cost basis in these shares as step #1. Print it. Copy it. Keep a record. Then, you could transfer them in-kind to Vanguard - in a separate and distinct (brand new) brokerage account in your name. ...
by retired@50
Wed Mar 27, 2024 9:45 am
Forum: Personal Investments
Topic: Withdrawal Strategy Help Requested
Replies: 13
Views: 1240

Re: Withdrawal Strategy Help Requested

connor77 wrote: Wed Mar 27, 2024 9:34 am ... I'm not super comfortable buying equities with my taxable CD proceeds (when they mature) from a sleep at night standpoint. I will, however, bumping up my equity position slowly in tax deferred accounts.
Maybe if you read and understand the wiki page on tax efficient fund placement you'll feel better about buying stock funds in your taxable account. Incidentally, this will also create less taxable income, which should help with your other goals... ACA subsidies and Roth conversions.

Regards,
by retired@50
Wed Mar 27, 2024 9:32 am
Forum: Personal Investments
Topic: I think my Mom, recently widowed, is looking at a tax bomb
Replies: 28
Views: 4853

Re: I think my Mom, recently widowed, is looking at a tax bomb

A somewhat related question, if one needs to move to assisted living, is the entire cost a deductible medical expense (subject to minimum) or just the care component? Some facilities have a base rent plus varying levels of care at additional cost. Other facilities include some level of care in the base. Then there's a community fee upfront, and assorted other charges. What is potentially deductible? No, the entire cost is usually not deductible. You can find some guidance via Googling, a physican needs to do an assessment of need to determine what the individual cannot do themselves, etc. Then of course the medical costs must exceed a sizeable percentage of income. The percentage, at least currently, is 7.5% of AGI. It has moved around in ...
by retired@50
Tue Mar 26, 2024 5:34 pm
Forum: Personal Investments
Topic: Rolling over 401k
Replies: 4
Views: 363

Re: Rolling over 401k

I am green at this and thought I could reach out here to ask question. I am currently retired and have Fidelity 401k in Stable Value Fund. I want to rollover to earn more with little risk. Being 72yo I am very conservative and cautious investor. The Fidelity advisor suggests putting it in Deferred Fixed Annuities. All I know about annuities is give someone a lump sum and if I die tomorrow that money is gone... LOL. The advisor told me these are not like that. He told me I can withdraw my RMD with no problem before maturity. Any input? Thanks Welcome to the forum. You need to be careful with annuities. :shock: Some are okay, and have simple, easily understood features, while other annuities are wildly complex and incomprehensible. The two &...
by retired@50
Tue Mar 26, 2024 5:28 pm
Forum: Personal Investments
Topic: Guaranteed Investments
Replies: 4
Views: 539

Re: Guaranteed Investments

There's a difference between investments (which have risk) and deposits which typically don't have risk, due to FDIC insurance.

If you're looking for guaranteed - stick with deposits.

P.S. don't forget about inflation, as SmileyFace reminds you above.

Regards,
by retired@50
Tue Mar 26, 2024 5:26 pm
Forum: Personal Investments
Topic: Roth Conversion & Inherited IRA?
Replies: 6
Views: 671

Re: Roth Conversion & Inherited IRA?

tostjoe64 wrote: Tue Mar 26, 2024 3:45 pm
1. Should I perform Roth Conversions ...
Welcome to the forum.

Have you read the wiki page on Roth conversions?

Especially the "Whether, when, and how much to convert" section. It may help you decide.

Regards,
by retired@50
Tue Mar 26, 2024 3:25 pm
Forum: Personal Investments
Topic: I think my Mom, recently widowed, is looking at a tax bomb
Replies: 28
Views: 4853

Re: I think my Mom, recently widowed, is looking at a tax bomb

Mom is currently disabled and, soon, will likely require long-term / end-of-life care beyond what I can provide (assisted living / nursing home). This is likely sometime between the next 1 to 5 years. Dad was not just her husband, but also her long-term care nurse. It's possible she'll be eligible for medical expense deductions if she needs assistance with 2 or more activities of daily living. ADLs. My FIL had 6 figures of medical expense deductions for several years. The money to pay those huge costs was taken from an IRA (seen as ordinary income) and then those expenses were promptly deducted on his Form 1040 which reduced his income dramatically. He wound up in a low tax bracket. More details here: https://www.irs.gov/taxtopics/tc502 an...
by retired@50
Tue Mar 26, 2024 2:34 pm
Forum: Personal Investments
Topic: Fidelity Wealth Mgmt Advisor vs. Fidelity Target Fund
Replies: 17
Views: 1404

Re: Fidelity Wealth Mgmt Advisor vs. Fidelity Target Fund

BettyBon wrote: Tue Mar 26, 2024 1:07 pm Will do! Awaiting my advisor to return my call/email to cancel them.
Also, my company doesn't offer the FXIFX Fidelity Freedom Index 2030 Fund with 0.12% expense ratio but informed me that my current FID FRDM BLND 2030 T Fund has an expense ratio of 0.20% so I'll put everything in that once I can cancel the advisor.
You may need to follow up with the adviser if you have already told them you intend to cancel. That's likely a call they won't return in a hurry.

Regards,
by retired@50
Tue Mar 26, 2024 10:51 am
Forum: Personal Investments
Topic: Advice for 29 year old daughter
Replies: 32
Views: 2806

Re: Advice for 29 year old daughter

doctormike wrote: Tue Mar 26, 2024 10:47 am Thanks Tashnewbie and Retired@50. Defenitely understand that she may want to transition to non-roth in the the future. I'm still thinking that it makes sense to do a Roth IRA instead of a Roth 401K to allow a broader selection of investments. Does this make any sense? And any thoughts on VTSAX?

Thanks
That would depend on the options in her 401k plan? I presume she'd have the same choices available whether she uses Roth or Traditional.

If you want help with the 401k choices, you'll need to list them for the forum. Are there high fees or high expense ratios in the plan?

Of course, VTSAX is a fine choice for a Roth IRA.

Regards,
by retired@50
Tue Mar 26, 2024 10:32 am
Forum: Personal Investments
Topic: Advice for 29 year old daughter
Replies: 32
Views: 2806

Re: Advice for 29 year old daughter

My daughter is 29 years old. She is single and her job pays about $80K/year. She owns a condo that she rents out and is slightly cashflow positive. Lives at home with parents for now and is saving money to purchase another residence. She has taken my advice and has been putting $10K/year in a roth 401K at her work. I just found out that her employer doesn't match on the 401K but instead they deposit profit sharing in her 401K (Not Roth) and her participation in the profit sharing isn't based on participation in the 401K. I told her she'd be better off putting the max into a Roth IRA each year instead of all the savings going in her Roth 401k because 40 years from now she won't be faced with RMDs . Being that she has a 40 year window I'm re...
by retired@50
Tue Mar 26, 2024 10:23 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 6053
Views: 1036911

Re: Should I move it all to Fidelity?

SmileyFace wrote: Tue Mar 26, 2024 10:21 am
retired@50 wrote: Tue Mar 26, 2024 10:21 am
Stan Dup wrote: Tue Mar 26, 2024 9:25 am ... Less fees on my IRAs.
This ^^^ is certainly a reason to move an IRA away from a bank or credit union.

Regards,
In the case of the OP I think it is moving "retirement accounts" from Vanguard.
I see that now... If the OP is referring to Fidelity "Zero" funds instead of paying 3 or 4 basis points at Vanguard, then it may not matter all that much.

Regards,
by retired@50
Tue Mar 26, 2024 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 6053
Views: 1036911

Re: Should I move it all to Fidelity?

Stan Dup wrote: Tue Mar 26, 2024 9:25 am ... Less fees on my IRAs.
This ^^^ is certainly a reason to move an IRA away from a bank or credit union.

Regards,
by retired@50
Tue Mar 26, 2024 10:17 am
Forum: Personal Investments
Topic: Looking for a new savings/investment vehicle.
Replies: 15
Views: 944

Re: Looking for a new savings/investment vehicle.

OONeill57 wrote: Tue Mar 26, 2024 9:56 am I'm maxing out my 401K and my employer provides a nice match. I also max out my IRA every year. I'm looking for some other tax deferred vehicle so I can invest/save for my future. I've had people try to sell me on lifeinsurance policies (7702), but not really buying that as an option yet. Any thoughts or ideas would be appreciated.
Welcome to the forum.

A Health Savings Account comes to mind, if you're eligible.

See the wiki for details.

Prioritizing investments: https://www.bogleheads.org/wiki/Priorit ... nvestments

HSA: https://www.bogleheads.org/wiki/Health_savings_account

As far as life insurance goes, term life is typically best.

Regards,
by retired@50
Tue Mar 26, 2024 10:11 am
Forum: Personal Investments
Topic: Buy OOS Muni Bonds?
Replies: 11
Views: 449

Re: Buy OOS Muni Bonds?

Rocky Mtn Man wrote: Tue Mar 26, 2024 10:05 am A muni money market may work for you. Zero price fluctuation.
Agreed. VMSXX may fit the bill. No worry about credit risk, and no time spent on investigating bond issuers.

Regards,
by retired@50
Tue Mar 26, 2024 10:08 am
Forum: Personal Investments
Topic: Roth Conversion - Source for Paying Taxes
Replies: 31
Views: 2741

Re: Roth Conversion - Source for Paying Taxes

I'm 62 and considering traditional to Roth conversions but have a couple of questions that I can't find answers to in the Roth conversion wiki https://www.bogleheads.org/wiki/Roth_conversion or elsewhere. I understand why you'd pay taxes from savings/cash assets if you'd otherwise be penalized for the amount taken from a conversion that is used to pay the taxes. But at 62 years old are there any advantages or reasons to pay the conversion taxes from savings rather than conversion proceeds? So long as I manage the conversions the portion used to pay taxes would be taxed at a lower rate than the taxes already paid on the savings taxes would otherwise come from. In a related question - if the traditional IRA investment as overly complicated (...
by retired@50
Tue Mar 26, 2024 9:59 am
Forum: Personal Investments
Topic: Buy OOS Muni Bonds?
Replies: 11
Views: 449

Re: Buy OOS Muni Bonds?

AbileneCstat wrote: Tue Mar 26, 2024 9:55 am I am solely interested in targeting specific individual muni bonds with very short term maturity dates. I do not want to invest in a fund where prices will fluctuate. I am planning to purchase the bonds to park cash (that won't generate more taxable income ) to pay a a ton of taxes next April for a large Roth conversion (also triggering large LTCG's this year to pay those taxes).
In that case, choose your issuer wisely.

I'd be looking for a state with a high credit rating, and a general obligation bond.

Regards,
by retired@50
Tue Mar 26, 2024 9:51 am
Forum: Personal Investments
Topic: Traditional Vs Roth 401k
Replies: 5
Views: 512

Re: Traditional Vs Roth 401k

So the last two years me and my wife have started contributing to all Roth401k. We currently reside in a high tax state (NY) and are in the middle of the 24% tax bracket. We started doing the Roth for tax diversification purposes as everything prior has been traditional 401k. Based on projections it seems we may end up having more income in retirement than we do currently. I would like to retire to a low/no income tax state in retirement but thats at least 18 years away and who knows what the landscape will be then. so at this point im questioning if it would be better to just do traditional and invest the tax savings now in brokerage or to continue on with the Roth 401k at least until the current tax brackets expire. Given what you descri...
by retired@50
Tue Mar 26, 2024 9:46 am
Forum: Personal Investments
Topic: Buy OOS Muni Bonds?
Replies: 11
Views: 449

Re: Buy OOS Muni Bonds?

I live in Texas (with no state income tax.) Am exploring purchasing out of state muni bonds, but am unclear on all the warnings about doing so because of state income taxes. I "get" the general rule is that you want to buy munis issued from within your state of residence to avoid state income tax. If I were to buy a New York or California (or other Out Of State "OOS") issued muni, would those states withhold a tax on the muni interest paid to me? If not, then the general rule stated above appears not to apply to residents of states with no income tax. If so, the I can purchase munis issued from ALL STATES and not be concerned about state income taxes, correct? Welcome to the forum. Are you considering individual municip...
by retired@50
Mon Mar 25, 2024 7:27 pm
Forum: Personal Investments
Topic: Muni break-even tax rate
Replies: 12
Views: 1405

Re: Muni break-even tax rate

https://www.schwab.com/learn/story/municipal-vs-corporate-bonds-how-to-choose Should I invest in muni bonds? The second graph at this link suggests the answer is yes only if I’m at a 45% marginal rate. I understand tax-equivalent yield, but the break-even tax rate fluctuates over time due to spread changes. Also, munis have less volatility than corporates but more than treasuries, the latter being exempt from state taxes. So there are a lot of levers when building an efficient taxable portfolio. I need more bonds in my taxable account. I am maxing out bonds in my 401(k), but my desired allocation requires more bonds due to significant equity holdings in my taxable account. My federal marginal tax rate is 24%. I am also subject to a 3.8% ne...
by retired@50
Mon Mar 25, 2024 7:09 pm
Forum: Personal Investments
Topic: QQQ Question
Replies: 49
Views: 2861

Re: QQQ Question

jonbkray wrote: Mon Mar 25, 2024 7:01 pm
retired@50 wrote: Mon Mar 25, 2024 6:56 pm
jonbkray wrote: Mon Mar 25, 2024 6:51 pm Thanks VGT is another option as well. Would this be a good addition, or should I stick with the VTSAX/FXAIX alone?
I'd stick with the two funds you already have. With an S&P 500 fund and a total market fund, you're covered on US stock. No need to keep turning over rocks.

Regards,
Thanks for your input. I know past performance does not determine future performance, however, just looking at the 5 year chart QQQ almost doubled the performance of VT.. and at 1 year QQQ beats VTSAX by almost 15 percent.. I feel like I'm missing out on a lot of potential upside.
I can only suggest you do some reading. It feels as though you may be performance chasing. It's a known phenomenon that tends to hurt investors.

Regards,
by retired@50
Mon Mar 25, 2024 7:02 pm
Forum: Personal Investments
Topic: Fidelity Wealth Mgmt Advisor vs. Fidelity Target Fund
Replies: 17
Views: 1404

Re: Fidelity Wealth Mgmt Advisor vs. Fidelity Target Fund

I will find out if there are any potential capital gains taxes , then put everything into the Fidelity Freedom Index 2030 Fund, and cancel the Financial Advisor. Thank you both! This will have to do with the account type. The accounts will likely fall into one of three main categories. 1. Taxable investment account (sometimes called a brokerage account) 2. Tax-deferred retirement account (could be a 401k or a traditional or rollover IRA) 3. Roth account (could be a Roth IRA or a Roth 401k). If you have a "taxable" account (like # 1.) then you'll need to concern yourself with the potential capital gains. For the other two account types (# 2., 3.), if you leave the money inside the account, but just switch from one investment fund ...
by retired@50
Mon Mar 25, 2024 6:56 pm
Forum: Personal Investments
Topic: QQQ Question
Replies: 49
Views: 2861

Re: QQQ Question

jonbkray wrote: Mon Mar 25, 2024 6:51 pm Thanks VGT is another option as well. Would this be a good addition, or should I stick with the VTSAX/FXAIX alone?
I'd stick with the two funds you already have. With an S&P 500 fund and a total market fund, you're covered on US stock. No need to keep turning over rocks.

Regards,
by retired@50
Mon Mar 25, 2024 6:49 pm
Forum: Personal Investments
Topic: QQQ Question
Replies: 49
Views: 2861

Re: QQQ Question

jonbkray wrote: Mon Mar 25, 2024 6:41 pm So, are you for or against adding it to a portfolio ?
QQQ is duplicative.

Everything in QQQ is already in VTSAX, and most of it is probably in FXAIX.

If you want to tilt your portfolio towards buying MORE tech, then use something like VGT.

Warning: Boglehead orthodoxy would suggest that you not do this. Owning the whole market (VTSAX) should be sufficient. Tilting toward a particular market sector doesn't always work out as one might hope.

Regards,
by retired@50
Mon Mar 25, 2024 6:37 pm
Forum: Personal Investments
Topic: Fidelity Wealth Mgmt Advisor vs. Fidelity Target Fund
Replies: 17
Views: 1404

Re: Fidelity Wealth Mgmt Advisor vs. Fidelity Target Fund

I'm a single 58 year old, clueless about investing, & work way too much overtime to be able to educate myself. I have: $104k where I've 8% invested in FID FRDM BLND 2030 Target Fund with 0.66% expense ratio (32.1% domestic stock, 28.2% foreign stock, 39.7% Bonds) and 10% invested in Roth (just started the Roth today as I previously had the entire 18% in Target Fund). $445k in Fidelity Wealth Mgmt w/1.22% managed acct fee since May 2023 (40.4% domestic stock, 19.8% foreign stock, 36.3% bonds, 2% short term, 1.5% other). From May 2023 until today, the managed acct has increased $56k, net fees. I'm trying to decide if I should continue with a managed acct or just put everything back into the Target Fund to avoid the 1.22% managed acct fee...
by retired@50
Mon Mar 25, 2024 6:29 pm
Forum: Personal Investments
Topic: Need advice
Replies: 9
Views: 952

Re: Need advice

My student loans have overwhelmed me. I've been paying on them for 15 years, and my balance hasn't changed. I know the mistakes I made that got me into this situation (please don't lecture me on this). After graduating HS, I was clueless. I was the first in my family to go to college, and didn't really have any guidance with anything like this. I have since hired a company to help me with my student loan debt. They have got my monthly payments as low as possible. In 10 years my remaining balance will be forgiven. Bad news is I will owe taxes for that amount forgiven. The loan company has suggested that I start planning for this, as I will need a large sum of money to pay the taxes when the time comes. They have suggested that I start putti...
by retired@50
Mon Mar 25, 2024 6:23 pm
Forum: Personal Investments
Topic: Please help me organize the fixed income part of my portfolio
Replies: 131
Views: 8404

Re: Please hep me organise the fixed income part of my portfolio

UpperNwGuy wrote: Mon Mar 25, 2024 4:19 pm
lakpr, please answer four questions:
1. How much did your Total Bond holding "lose" in 2022?
2. What portion of those "losses" did you recover in 2023 and YTD in 2024.
3. Were any of those losses "realized" or were they all "unrealized"?
4. When do you need to start withdrawing for your retirement?
viewtopic.php?p=7696248#p7696248

Regards,
by retired@50
Mon Mar 25, 2024 11:14 am
Forum: Personal Finance (Not Investing)
Topic: SERIES E savings bonds
Replies: 11
Views: 789

Re: SERIES E savings bonds

brandy wrote: Mon Mar 25, 2024 11:12 am I have two SERIES E savings bonds, dated 1967. Where do I need to get them cashed?
Is there interest on them? Twenty-five dollars in 1967.
See link: https://treasurydirect.gov/indiv/tools- ... form-1522/

Regards,
by retired@50
Mon Mar 25, 2024 11:11 am
Forum: Personal Investments
Topic: Correctly Representing 2 Years of Roth Backdoor Conversions That Were Done At The Same Time in Form 8606
Replies: 7
Views: 424

Re: Correctly Representing 2 Years of Roth Backdoor Conversions That Were Done At The Same Time in Form 8606

Hopefully, you now realize that it's Form 8606 and not 8060 in spite of your repeatedly calling it 8060.

Regards,
by retired@50
Mon Mar 25, 2024 10:36 am
Forum: Non-US Investing
Topic: What is the difference between VFAWF and VWRP
Replies: 18
Views: 1051

Re: What is the difference between VFAWF and VWRP

kyleplaytime15 wrote: Sun Mar 24, 2024 11:24 pm I want to buy the Vanguard all world etf, but domiciled in ireland.

I live in the US but im a non-us resident
You may need to ask this question in the Non-US investor section of the forum.

Regards,
by retired@50
Mon Mar 25, 2024 10:26 am
Forum: Personal Investments
Topic: Those complimentary dinners for retirees by investment advisors
Replies: 137
Views: 10179

Re: Those complimentary dinners for retirees by investment advisors

DetroitRick wrote: Mon Mar 25, 2024 10:24 am ... I'm good at saying no.
^^^ This is an important life skill. :beer

Regards,