Search found 209 matches

by DA200
Thu Aug 22, 2019 9:18 am
Forum: Personal Investments
Topic: Finally ready to start a taxable account - Need some advice
Replies: 25
Views: 2478

Re: Finally ready to start a taxable account - Need some advice

We have a 403b, traditional IRAs and Roth IRAs at Fidelity. I really find it convenient to have our taxable account at Fidelity. Makes it super easy to fund a backdoor Roth vis an immediate transfer from the taxable account. Also easy to review positions on one website. Highly recommend ITOT and/or ...
by DA200
Mon Aug 12, 2019 6:12 am
Forum: Personal Investments
Topic: First time selling out of taxable account
Replies: 12
Views: 2188

Re: First time selling out of taxable account

I am about to sell $10k of shares for some house repairs. I just want to make sure my thinking is correct. I have the fund under SpecID. I "think" I should be selling the ones with the least amount of gains to minimize the tax. These are all long term and all are in the positive. Anything that I am...
by DA200
Wed Jun 12, 2019 9:26 pm
Forum: Personal Finance (Not Investing)
Topic: How much is your guys’ fees for your 401k?
Replies: 96
Views: 5985

Re: How much is your guys’ fees for your 401k?

My spouse pays 1.0% in fees ($1,500 per year and going up as she continues to contribute). Small 25 person medical practice with a crappy 401k. She will be rolling to an IRA at Vanguard after retirement!
by DA200
Wed May 15, 2019 7:26 pm
Forum: Personal Investments
Topic: Should I switch from Fidelity Total Market Index to a Vanguard Total Market ETF?
Replies: 9
Views: 1342

Re: Should I switch from Fidelity Total Market Index to a Vanguard Total Market ETF?

Thanks for all the advice. I think I'll likely convert it to an ITOT ETF (thanks, DA200). Unfortunately, FSKAX is almost exactly back to where it was when I purchased it a year ago (I purchased it at $80.80 a share and today it's at $80.44). It's earned $2,700 in dividends, so at least the capital ...
by DA200
Wed May 15, 2019 6:26 am
Forum: Personal Investments
Topic: Should I switch from Fidelity Total Market Index to a Vanguard Total Market ETF?
Replies: 9
Views: 1342

Re: Should I switch from Fidelity Total Market Index to a Vanguard Total Market ETF?

Hi all - I know that variations of this topic have been addressed ad nauseam, but I'm wondering if I should switch from FSKAX (Fidelity Total Market Index) to VTI (Vanguard Total Market ETF)? A year ago I invested 100K into FSKAX in a taxable account. I chose Fidelity mostly because there's an offi...
by DA200
Wed May 08, 2019 11:14 pm
Forum: Personal Investments
Topic: Transitioning actively-managed brokerage (previous windfall) to buy-and-hold index funds, but unrealized capital gains
Replies: 8
Views: 941

Re: Transitioning actively-managed brokerage (previous windfall) to buy-and-hold index funds, but unrealized capital gai

As silly as this seems, I didn't realize until now that my 403b contributions affect which tax bracket I'm in. My 403b contributions actually do take me under the limit! ($39,375 for the 0% capital gains bracket, correct?) But then the capital gains then put me back over it... OK - since you didn't...
by DA200
Tue May 07, 2019 8:33 pm
Forum: Personal Investments
Topic: Transitioning actively-managed brokerage (previous windfall) to buy-and-hold index funds, but unrealized capital gains
Replies: 8
Views: 941

Re: Transitioning actively-managed brokerage (previous windfall) to buy-and-hold index funds, but unrealized capital gai

Any chance of getting into the 12% tax bracket (0% capital gains bracket)?
1) I see you max a 403b. Do you also have a 457b that you could contribute to and bring down your taxable income?
2) Possibility of getting married in the near future which might put you in a lower tax bracket?
by DA200
Sun Mar 03, 2019 9:34 pm
Forum: Personal Finance (Not Investing)
Topic: Roth conversion - $4 million in IRA and 401(k)?
Replies: 38
Views: 3124

Re: Roth conversion - $4 million in IRA and 401(k)?

Converting $166,000/year would result in taxes of $48,000/year for the next 6 years. Can you explain how you get to $48,000 in taxes on $166,000 conversion? You don't clearly state your other income streams before 70. Based on your original post, it appears you are currently in a very low bracket. ...
by DA200
Sat Mar 02, 2019 11:26 am
Forum: Personal Investments
Topic: Question about Asset Allocation for 21 year old
Replies: 8
Views: 746

Re: Question about Asset Allocation for 21 year old

Hi guys! Been lurking here a bit the past year, but I finally have a couple of questions for myself: 1. I started contributing to my Roth IRA (through Schwab) last year and have been running with this allocation since I opened my account: SWPPX 55%, SWSSX 15%, SWISX 25%, SWAGX 5%. That said, I rece...
by DA200
Mon Feb 25, 2019 12:51 am
Forum: Personal Investments
Topic: Morning Star X-Ray skewed toward Vanguard?
Replies: 7
Views: 986

Re: Morning Star X-Ray skewed toward Vanguard?

I'm not sure what I saw here. I used TDAmeritrade link here <https://www.tdameritrade.com/education/tools-and-calculators/morningstar-instant-xray.page> to compare Fidelity funds and Vanguard funds. Here what I saw under "Fee & Expenses" / "Potential cap gains". For example: 1. VFIAX (500 S&P Adm) ...
by DA200
Mon Feb 25, 2019 12:27 am
Forum: Personal Finance (Not Investing)
Topic: Step-up in Basis and Estate question
Replies: 19
Views: 1359

Re: Step-up in Basis and Estate question

"ouch" because the funds would be sitting out of the market The advice that most lawyers will give to the executor is "liquidate asap and go to cash or at minimum a high yielding money market". The executor's duty is to protect all assets until distribution . Keeping assets in risky stocks is not p...
by DA200
Wed Feb 20, 2019 3:16 pm
Forum: Personal Investments
Topic: Portfolio help for 2 teacher family in Ohio
Replies: 26
Views: 1781

Re: Portfolio help for 2 teacher family in Ohio

Questions/Concerns: 1. Have some extra cash on hand. I am trying to decide what to do with it. My instinct is to pay down the mortgage somewhat (which is higher than we set out to have). Of course, I could invest more into 529s or use this extra cash for expenses while opening up an Ohio 457 accoun...
by DA200
Mon Feb 18, 2019 3:30 pm
Forum: Personal Investments
Topic: 15% Bond allocation - CA Munis in Taxable or Total Bond in IRA
Replies: 13
Views: 1121

Re: 15% Bond allocation - CA Munis in Taxable or Total Bond in IRA

Thanks! This year, I am contributing $19K in traditional 401(k) and about non-deductible $30K, which gets converted to Roth 401(k) immediately (my plan administrator Fidelity provides this option). To summarize, this is my plan: Split $500K into 85% Stocks / 15% Bonds US Stocks:Int'l Stocks = 2:1 H...
by DA200
Mon Feb 18, 2019 7:37 am
Forum: Personal Investments
Topic: 15% Bond allocation - CA Munis in Taxable or Total Bond in IRA
Replies: 13
Views: 1121

Re: 15% Bond allocation - CA Munis in Taxable or Total Bond in IRA

Yes - definitely place all bonds in your tax-deferred 401k. You want your Roth account to grow the most (since they are 100% tax free), so Roths should be in 100% stocks. Focus on tax efficient Total US and Total International funds in your taxable account. Are you still contributing to the Roth 401...
by DA200
Sat Feb 16, 2019 2:48 pm
Forum: Personal Investments
Topic: ROTH conversion before RMDS
Replies: 25
Views: 678

Re: ROTH conversion before RMDS

OK if we have 32% tax bracket to deal with how do we analyze and correlate that to the post seventy RMDS without the conversion. Thank you for helping begin to see the logic. Very roughly, if you did not convert anything before 70 you would be in the following tax bracket in your early 70s: $100K (...
by DA200
Mon Feb 11, 2019 8:15 pm
Forum: Personal Investments
Topic: Trying to balance simplicity with tax-efficiency
Replies: 7
Views: 994

Re: Trying to balance simplicity with tax-efficiency

Thanks for the advice. Maybe I was overthinking this in my head :) I like the idea of just switching my VFORX in my taxable to either VTWAX (total world) or VTMFX (tax-managed balanced). I guess an argument for VTMFX would be that it would get me a little closer to my old AA across all my retiremen...
by DA200
Mon Feb 11, 2019 6:10 pm
Forum: Personal Finance (Not Investing)
Topic: 75 yr old MIL - Pay off mortgage at 4.0%?
Replies: 30
Views: 1828

Re: 75 yr old MIL - Pay off mortgage at 4.0%?

There has to have been a reason your MIL took out a mortgage in the first place since the loan is fairly new. Don't overlook a "peace of mind" dividend which can supercede the best choice by the numbers if there isn't a huge difference in the numbers. Some people get peace of mind by being mortgage...
by DA200
Sun Feb 10, 2019 12:39 pm
Forum: Personal Investments
Topic: Roth 403b or 457 for two teacher family with two pensions
Replies: 22
Views: 1461

Re: Roth 403b or 457 for two teacher family with two pensions

How many years do you have in NYSTRS? How many more years do you plan to work in NYSTRS and how old will you be at that time? If your plan is for both of you to work for a total of 30 years in the NYSTRS system, I would definitely consider the estimations below: Currently, if you were to max both tr...
by DA200
Sat Feb 09, 2019 4:25 pm
Forum: Personal Finance (Not Investing)
Topic: 75 yr old MIL - Pay off mortgage at 4.0%?
Replies: 30
Views: 1828

Re: 75 yr old MIL - Pay off mortgage at 4.0%?

Be aware that the mortgage may include tax which she would pay separately if home paid off. Sounds good to me, especially if she is heavy on fixed income vs. equities. Use her RMD (unless she is doing QCD), sell the lowest gains of taxable, not the last 37k; maybe she can avoid selling highest gain...
by DA200
Sat Feb 09, 2019 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: 75 yr old MIL - Pay off mortgage at 4.0%?
Replies: 30
Views: 1828

Re: 75 yr old MIL - Pay off mortgage at 4.0%?

Once the mortgage is gone, her spending will drop to about $35k (assuming that taxes and insurance aren't part of the $850 payment you cited). That means that she only needs $9k coming from $870k of assets, about a 1% withdrawal rate. That would probably and literally last forever with her allocati...
by DA200
Sat Feb 09, 2019 4:14 pm
Forum: Personal Finance (Not Investing)
Topic: 75 yr old MIL - Pay off mortgage at 4.0%?
Replies: 30
Views: 1828

Re: 75 yr old MIL - Pay off mortgage at 4.0%?

As an alternative, if she put her RMD each year toward an extra principal payment then she’d pay off the mortgage in about 4 years. And there’d be no complications with capital gains, taxes, or Medicare. If her ex-husband died during that time, she could reevaluate her options. Good suggestion - ru...
by DA200
Sat Feb 09, 2019 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: 75 yr old MIL - Pay off mortgage at 4.0%?
Replies: 30
Views: 1828

Re: 75 yr old MIL - Pay off mortgage at 4.0%?

I suggest at least considering doing it over two years. Her total income (including the RMD) is going to be very near the lowest IRMAA tier which should be $85k if she is single. Going over that limit will raise her Medicare Part B premiums about $600 a year. It may raise other Medicare premiums as...
by DA200
Sat Feb 09, 2019 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: 75 yr old MIL - Pay off mortgage at 4.0%?
Replies: 30
Views: 1828

Re: 75 yr old MIL - Pay off mortgage at 4.0%?

Thanks to all of you for the great responses so far which appear to be in strong favor of paying off the mortgage. A concern my MIL has (which was not specifically addressed) is if her ex husband were to die tomorrow, which would cause her pension to be eliminated and reduce her yearly income stream...
by DA200
Sat Feb 09, 2019 11:52 am
Forum: Personal Finance (Not Investing)
Topic: 75 yr old MIL - Pay off mortgage at 4.0%?
Replies: 30
Views: 1828

75 yr old MIL - Pay off mortgage at 4.0%?

I have a 75 yr old MIL who has asked me for advice regarding paying off her mortgage. Situation: 75 yr old MIL in very good health (divorced) Income: $13K/yr SS* + $32K/yr pension*= $45K/yr *Pension is eliminated when 75 yr old ex husband dies, but SS would increase to $26K/yr Investments: $870K in ...
by DA200
Fri Feb 08, 2019 9:24 pm
Forum: Investing - Theory, News & General
Topic: Three fund Portfolio at Fidelity
Replies: 7
Views: 1524

Re: Three fund Portfolio at Fidelity

IXUS and ITOT are the optimal tax efficient International and US Total Stock funds to purchase for free at Fidelity.
If tax deferred space is available for bonds, place all bonds there, not in taxable.
by DA200
Fri Feb 08, 2019 9:13 am
Forum: Investing - Theory, News & General
Topic: How much more tax efficient are Schwab ETFs vs index funds?
Replies: 12
Views: 1390

Re: How much more tax efficient are Schwab ETFs vs index funds?

The first thread below discusses detailed tax efficiency of specific etfs and mutual funds from Vanguard, Fidelity, Schwab, etc. The second thread (and paragraph below) has some discussion about why Morningstars tax cost numbers are often wrong and misleading. https://www.bogleheads.org/forum/viewto...
by DA200
Thu Jan 31, 2019 11:08 am
Forum: Personal Investments
Topic: Active Managed Funds Eating Us Alive With Taxes
Replies: 17
Views: 1766

Re: Active Managed Funds Eating Us Alive With Taxes

Since you have stated that these funds will most likely not be needed by you and your wife, and will get passed on to your children, you should do the following: 1) minimize taxes being paid on the account during your wife's (and your) lifetime ( which could be 30+ years ) 2) minimize investment exp...
by DA200
Wed Jan 30, 2019 11:14 pm
Forum: Personal Investments
Topic: Determining which fund is more tax efficient
Replies: 13
Views: 1959

Re: Determining which fund is more tax efficient

Consult the tax efficiency spreadsheet on this and do NOT use guesswork NOR the mornginstar.com tax cost ratio which is known to be bogus. https://www.bogleheads.org/forum/viewtopic.php?t=242137 But also note that one would need full year's data on any fund you plug into the spreadsheet. Why is the...
by DA200
Wed Jan 30, 2019 9:53 pm
Forum: Personal Investments
Topic: Determining which fund is more tax efficient
Replies: 13
Views: 1959

Re: Determining which fund is more tax efficient

Interesting & useful spreadsheet. They don't seem to make it easy to find all of that info :( But I can see how you arrived at the tax efficiency value. Highly recommend using ITOT and/or IXUS ETFs in a taxable account at Fidelity for optimal tax efficiency. FSKAX often has yearly capital gains dis...
by DA200
Sun Jan 27, 2019 2:30 pm
Forum: Personal Investments
Topic: Fidelity Index Mutual Funds vs Vanguard Index ETF
Replies: 4
Views: 569

Re: Fidelity Index Mutual Funds vs Vanguard Index ETF

At Fidelity, you do have a third option: use iShares ETFs, which trade commission free. They are generally about as cheap as Vanguard, and they will be about as tax-efficient as well. The reason why mutual funds are generally less tax efficient than ETFs is because they cannot shed capital gains, w...
by DA200
Wed Jan 23, 2019 6:31 pm
Forum: Personal Finance (Not Investing)
Topic: Any regrets not funding a 529?
Replies: 27
Views: 4020

Re: Any regrets not funding a 529?

We have chosen not to fund a 529 for our son. Instead, we invest in taxable in tax efficient Total Stock etfs. Our reasoning was based on the following: 1) the state tax savings for contributing to a 529 was minimal (due to our low state taxable income/tax bracket - since state provides significant ...
by DA200
Wed Jan 23, 2019 5:37 pm
Forum: Personal Investments
Topic: Schwab does not allow specific tax lots to be selected online when selling mutual funds
Replies: 74
Views: 4077

Re: Schwab does not allow specific tax lots to be selected online when selling mutual funds

One thing I discovered (and rediscovered today) during my Spec Lot trials w/ Schwab. Don't talk to the reps who answer or the brokers they transfer you to. Ask to speak to the Cost Basis group.... they seem to know more about the specifics. I had excellent service with the Cost Basis group at Schwa...
by DA200
Wed Jan 23, 2019 5:25 pm
Forum: Personal Investments
Topic: Schwab does not allow specific tax lots to be selected online when selling mutual funds
Replies: 74
Views: 4077

Re: Schwab does not allow specific tax lots to be selected online when selling mutual funds

For online orders... Below is what comes up on the Schwab website when you sell stocks and etfs (and choose to select cost basis method at the time of the order). As you can see there are 6 choices for cost basis including specific id. This screen is NOT available when selling mutual funds at Schwab...
by DA200
Mon Jan 21, 2019 8:03 pm
Forum: Personal Investments
Topic: Retirement plan “improvements” (Fidelity vs. TIAA)
Replies: 18
Views: 2061

Re: Retirement plan “improvements” (Fidelity vs. TIAA)

Either company is good. Both have low fees (as you have described). If I was only a few years from retirement (or leaving the company), I would not switch (very minimal overall cost due to slightly higher fees). However, if I was 10+ years from retirement I would definitely make the switch to slight...
by DA200
Fri Jan 18, 2019 7:52 am
Forum: Personal Investments
Topic: Newbie needing some advice - which other Vanguard funds
Replies: 24
Views: 2146

Re: Newbie needing some advice - which other Vanguard funds

Thanks for the reply. Yes, this is brokerage account after 401K and HSA maxed out . I cannot do Roth IRA as I think me and my wife's earnings (combined and individual) fall outside the contribution limit of Roth IRA account . Hence we started looking at the brokerage account. Regards, Abhishek Make...
by DA200
Thu Jan 17, 2019 5:19 pm
Forum: Personal Investments
Topic: Does anyone have entire 401K in bonds?
Replies: 56
Views: 6887

Re: Does anyone have entire 401K in bonds?

Thanks for the all the great help, hoping to hear back from my replies as well. SWAN, is a new term of never heard of...love that! A few have mentioned state muncipal bonds, for when my bond allocation (30%) is more than my entire 401K balance, and I need to spillover to taxable. I looked at my sta...
by DA200
Tue Jan 15, 2019 8:11 pm
Forum: Personal Investments
Topic: Need Advice on Building Taxable Account
Replies: 12
Views: 1122

Re: Need Advice on Building Taxable Account

It seems like there are a few variations of the same funds at Fidelity? Fidelity Zero Fund (FZROX), Total US Stock Market (ITOT), Fidelity Total Market Index Fund (FSKAX). I understand the Zero Fund is new and doesn't have a track record, however, it does seem very similar to the others. I lean tow...
by DA200
Mon Jan 14, 2019 8:26 am
Forum: Personal Investments
Topic: Roast my portfolio. VEMAX instead of VTIAX?
Replies: 20
Views: 2671

Re: Roast my portfolio. VEMAX instead of VTIAX?

Then I suggest bonds in tax deferred and equities in taxable. You'll have the same asset allocation and risk exposure but the ability to defer more taxes, and more favorable long term capital gains tax rates. OP stated $5M in taxable and only $175K in tax deferred (97% in taxable and only 3% in tax...
by DA200
Mon Jan 14, 2019 12:40 am
Forum: Personal Investments
Topic: Does anyone have entire 401K in bonds?
Replies: 56
Views: 6887

Re: Does anyone have entire 401K in bonds?

If you are set on 70/30 (seems reasonable to me if you plan to FIRE in the next couple of years), then I would completely fill tax-deferred space with bonds. Make sure you are investing in the most tax efficient equity funds/etfs in the taxable account. Might consider a state specific muni bond fund...
by DA200
Mon Jan 14, 2019 12:03 am
Forum: Personal Investments
Topic: Question on taxable accounts
Replies: 2
Views: 493

Re: Question on taxable accounts

I am currently maxing out my Roth IRA (age 28) and I have ~78k in a taxable account of 75% VTSAX, 10% VTIAX, and the remaining in individual stocks such as Visa, Alibaba, Paypal etc. I am not educated when it comes to taxes, and do not want to necessarily pay a ton when and if I ever withdraw. I am...
by DA200
Sun Jan 13, 2019 11:24 pm
Forum: Personal Investments
Topic: Portfolio HELP - time to stop the bleeding from AUM fee
Replies: 34
Views: 2617

Re: Portfolio HELP - time to stop the bleeding from AUM fee

I have had to unwind a taxable portfolio with similar messes. For your situation (high income/high tax brackets) for the forseeable future, I would first sell any holding, except Vanguard funds, with $10K or less of unrealized capital gains (for simplification/reduction of number of funds without ma...
by DA200
Sun Jan 13, 2019 9:43 pm
Forum: Personal Investments
Topic: Roast my portfolio. VEMAX instead of VTIAX?
Replies: 20
Views: 2671

Re: Roast my portfolio. VEMAX instead of VTIAX?

I'm designing a 3-fund 65/35 early-retirement portfolio that will live in a taxable account. 55% VDADX - Vanguard Dividend Appreciation Index Fund Admiral Shares 10% VEMAX - Vanguard Emerging Markets Stock Index Fund Admiral Shares 35% VBTLX - Vanguard Total Bond Market Index Fund Admiral Shares VD...
by DA200
Fri Jan 11, 2019 1:45 pm
Forum: Investing - Theory, News & General
Topic: Did you ever "win" big?
Replies: 133
Views: 10631

Re: Did you ever "win" big?

Bought 100 shares of Amazon for $6,000 in 1999.
Still holding and now worth $164,000.
This is the only individual stock that we own and never plan to buy individual stocks again!
by DA200
Thu Jan 10, 2019 5:17 pm
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 137
Views: 8678

Re: BHers, what is your Roth IRA %?

Roth 2% Tax deferred 48% Taxable 50% Plan to do Roth conversions between beginning of retirement in 2022 (Age 55) and 2037 (Age 70) (all while receiving a pension). Plan to be more aggressive first few years and may reduce conversions later due to possible tax rate changes in 2025 and IRMAA starting...
by DA200
Thu Jan 10, 2019 9:04 am
Forum: Personal Investments
Topic: AA advice for this situation
Replies: 3
Views: 423

Re: AA advice for this situation

The concentration in a single pharma stock is the biggest concern. You mention that $535K is in this stock, plus additional shares in the same stock. How much total do you own of this pharma stock? To give better advice on how to unwind from this position and to also provide further guidance regardi...
by DA200
Sat Jan 05, 2019 2:40 pm
Forum: Personal Investments
Topic: 2019 Lump Sum IRA Contribution
Replies: 28
Views: 2157

Re: 2019 Lump Sum IRA Contribution

Contributed $7000 to traditional IRA on Jan. 1.
Converted $7000 from traditional IRA to Roth IRA on Jan. 3.
Purchased Small Cap Index at the close on Jan. 3
Up 3.7% in 1 day!
by DA200
Sun Dec 30, 2018 4:16 pm
Forum: Personal Investments
Topic: Tax efficiency of Fidelity index funds like FSKAX/FZROX
Replies: 7
Views: 2494

Re: Tax efficiency of Fidelity index funds like FSKAX/FZROX

I am restructuring my taxable Fidelity account and I was planning on the following allocation: 60% FZROX, 30% FZIPX, 10% FZILX. I'm young (23), so I want a more aggressive portfolio - thus the tilt towards mid/small cap via FZIPX. But I did some research and came across many past threads on the top...