Maxed retirement plans and moving cash in taxable accounts

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Geterdone
Posts: 1
Joined: Thu Apr 20, 2017 10:51 pm

Maxed retirement plans and moving cash in taxable accounts

Post by Geterdone » Thu Apr 20, 2017 11:25 pm

I have done been very fortunate to maxing my 401K into target funds over the years totaling $550,000, about the same into deferment account with index funds and bond funds and 40K into backdoor Roth 60% cash and the rest in individual stocks. another $400,000 in brokerage account with 40% cash and the rest in stock. $600,000 house is paid and no debt.Recently moved 100,000 into Vanguard broker account with excess money so I can start allocating to the 3 portfolio plan using a taxable account. My income is $440,000 so I am at the top of the tax burden. Im 55 years old and would like to retire in 5 to 10 years. Growth to all these accounts has been through maximizing company matches and god willing, I can continue to to invest at the rates I have been to retirement. The 3 booglehead portfolio account is to start moving excess money over time into this as I free up from the other accounts outside of tax advantage accounts. Since I am at the top of tax brackets, should I move these into tax advantage accounts particularly while I have the higher income for the new taxable account I am setting up?

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ruralavalon
Posts: 11300
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Maxed retirement plans and moving cash in taxable accounts

Post by ruralavalon » Fri Apr 21, 2017 8:55 am

Welcome to the forum :) .

It seems like you are in good shape, debt free, and on track for a comfortable retirement (depending on what your living expenses, Social Security, and pension might be).

Geterdone wrote:I have done been very fortunate to maxing my 401K into target funds over the years totaling $550,000, about the same into deferment account with index funds and bond funds and 40K into backdoor Roth 60% cash and the rest in individual stocks. another $400,000 in brokerage account with 40% cash and the rest in stock. $600,000 house is paid and no debt.Recently moved 100,000 into Vanguard broker account with excess money so I can start allocating to the 3 portfolio plan using a taxable account. My income is $440,000 so I am at the top of the tax burden. Im 55 years old and would like to retire in 5 to 10 years. Growth to all these accounts has been through maximizing company matches and god willing, I can continue to to invest at the rates I have been to retirement. The 3 booglehead portfolio account is to start moving excess money over time into this as I free up from the other accounts outside of tax advantage accounts. Since I am at the top of tax brackets, should I move these into tax advantage accounts particularly while I have the higher income for the new taxable account I am setting up?

I am not sure that I understand your question.

In general is usually best to use very tax-efficient stock index funds in a taxable account. Examples include Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.05% and Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%. Both are very tax-efficient. Wiki article "Tax-efficient fund placement".

In general it is usually better to make the maximum annual contributions to all tax-protected accounts before doing taxable investing. Please see the wiki article "Prioritizing investments".

I don't understand what investments and accounts you now have. You could amend your original post using the edit button, to put your information in this format: "Asking Portfolio Questions".
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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