Taxable Investment for the 2020s

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Topic Author
TexMexIndex
Posts: 34
Joined: Wed Mar 28, 2018 12:38 pm

Taxable Investment for the 2020s

Post by TexMexIndex » Mon Apr 30, 2018 3:45 am

Currently I am doing 18.5K to my 401K and 11K to my IRA (me and not working wife).
I'm putting an additional 3K annually into a fund for a house down payment, replacement car account
that should reach the 90K I want it to by the end of next year. I have a good emergency fund too.

From that point onward, I should have a minimum 3-5K a year I need to park with no plans to withdraw.
My taxable income is currently around 60K, but my spouse will start working and I will get more
salary paid as income, instead of nontaxed paying for my house/utilities.
So in the 2020s I will be in the 80-150k bracket in todays dollars. saving anywhere from 3K to 30K
a year to put in a taxable account that I plan to hold and not touch for a decade or more.

Thinking a 70/30 Stock/Bond mix with one of the total world stock vanguard index funds.
What should I do for bonds, especially with taxes in mind? Not sure what state I will be living
in but TX, GA, NC, or WA are most likely.

Thanks in advance for your input.

dbr
Posts: 30798
Joined: Sun Mar 04, 2007 9:50 am

Re: Taxable Investment for the 2020s

Post by dbr » Mon Apr 30, 2018 8:40 am

You should consider all of your assets as one portfolio. Many people hold most of their bonds in 401k or IRA accounts and mostly stocks in taxable.

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

https://www.bogleheads.org/wiki/Placing ... ed_account

Topic Author
TexMexIndex
Posts: 34
Joined: Wed Mar 28, 2018 12:38 pm

Re: Taxable Investment for the 2020s

Post by TexMexIndex » Tue May 01, 2018 2:50 am

Thanks, great articles. I see the wisdom in putting bonds in taxable, but for whatever reason I have trouble thinking of taxable and non taxable being in the same bucket. As I mature in my investments I guess I need to get past that. I think of non taxable as retirement and honestly don't know the long term goal of my taxable except increase wealth.

I've been chasing getting enough for a house and replacing a car or paying off student loans and now that I have done all that, need to think what I would use the non taxable money for and how to better integrate with retirement.

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