Ready to Simplify Taxable Account--advice, please

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Sagefemme
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Ready to Simplify Taxable Account--advice, please

Post by Sagefemme » Wed Sep 26, 2018 1:15 am

I am finally ready to do some simplifying, especially in my taxable account, now that the financial advisors are out of the picture. I would love some guidance. To recap my situation, I inherited a taxable account when my mom died in 2015. It is mostly in DFA funds that were chosen and managed by the FA firm. Unfortunately I never really communicated with them about my whole portfolio, much of which is elsewhere (Fido and TIAA), and therefore my AA across accounts is out of whack and there are a bunch of bond funds in this taxable account. I have not contributed any new funds to this account ever. The financial advisors did lots of buying and selling when they were involved, but I have done nothing since they stopped managing. I am assuming dividends are just staying in cash right now, but this is strangely hard to verify when I am on the Schwab website. I would like to simplify this account which currently has 16 funds. At the same time I need to get from 81% equities across all accounts down to 70-ish.

My desired AA is 70/30.

This is what Fidelity Full View (where I have diligently re-linked all the accounts since their new interface) says my AA is, across all accounts for me and my husband (401k X 2, 403B X 2, IRA X 1, taxable brokerage X 1):

Domestic Stock (large 79%, mid 11%, small 5%, and real estate 5%) 60.81 % across all accounts
International Stock (developed 91%, emerging 9%) 20.09 %
Bond (investment grade 71%, TIPS 20%, Muni 4%, international 3%, high yield 2%) 16.33 %
Short Term (what the heck is this? It's full of small amounts of lots of things incl. cash) 2.77 %
------------- 100% of portfolio

Her Taxable Account at Schwab 21.74 % of our total invested funds as follows
Name of Fund/Percent of taxable/Expense Ratio/Percent of total Portfolio
DFUSX (DFA US LARGE CO PORTFOLIO) 12.54% 0.08% 2.88
DFLVX (DFA US LARGE CAP VALUE... ) 15.14% 0.27% 3.33
DFCEX (DFA EMERGING MKTS CORE EQUITY) 8.15% 0.53% 1.5
DFISX (DFA INTL SMALL CO PORTFOLIO) 9.02% 0.53% 1.81
DTMVX (DFA TAX MANAGED US TARGETED VALUE)5.42% 0.44% 1.19
DFIEX (DFA INTL CORE EQTY PORT... ) 5.67% 0.30% 1.14
TBGVX (TWEEDY BROWNE GLOBAL VALUE FUND)6.58% 1.38% 1.41
DFSCX (DFA US MICRO CAP PORT INSTL) 4.86% 0.52% 1.12
DTMIX (DFA TAX MANAGED INTL VALUE) 1.9% 0.53% 0.38
DIPSX (DFA INFLATION PROTECTED SECURITIES) 2.67% 0.12% 0.55
DFSMX (DFA SHORT TERM MUNI BOND...) 3.46% 0.22% 0.72
DFIHX (DFA ONE YEAR FIXED INCOME) 1.64% 0.17% 0.34
DFEQX (DFA SHORT TERM EXTENDED QUALITY) 4.18% 0.22% 0.87
DFGBX (DFA FIVE YEAR GLBL FIXED INCOME) 5.27% 0.27% 1.10
LSBDX (LOOMIS SAYLES BOND FUND) 5.36% 0.66% 1.10
DFGEX (DFA GLOBAL REAL ESTATE SECURITIES) 6.97% 0.24% 1.54

His 401K TIAA_CREF 29.49 % of our total invested funds
Name/Ticker/Description/ER/percent of THIS 401k
CREF Bond Market Account - R3 QCBMIX Investment Grade Bond ER 0.12 6.08
CREF Equity Index Account - R3 QCEQIX Domestic Large Cap Stock ER 0.06 26.93
CREF Global Equities Account - R3 QCGLIX International Developed Stock ER 0.06 17.46
CREF Inflation-Linked Bond Account - R3 QCILIX TIPS ER 0.1 10.82
TIAA-Cref Bond Index Fund Instl TBIIX Multiple ER 0.12% 8.67
TIAA-CREF International Equity Index Inst Cl TCIEX Multiple 0.06 8.60
TIAA-CREF S & P 500 Index Fund Inst Multiple 0.06 21.44

His 403B TIAA (duplicates AA of the TIAA 401k) 20.19 % of our total invested funds
TIAA-Cref Bond Index Fund Instl TBIIX Multiple 21.79
TIAA-CREF International Equity Index Inst Cl TCIE Multiple 21.60
TIAA-CREF S & P 500 Index Fund Inst Multiple 56.61

His 403B Fidelity 1% of our total invested funds

Fidelity Contrafund FCNKX(FCNTX) 76.1 % ER 0.74
Fidelity Overseas K (FOSFX) 23.89 ER 1.0


Her 401K at Fidelity 18.32 % of our total invested funds
Ticker/Name/Percent of THIS 401K/ER/ Percent of total
FUSVX (Fidelity 500 Index Fund Premium Class) 81.26 % ER 0.015% 14.44 %
FSCKX (Fidelity Mid Cap Index Premium Class) 9.92 % ER 0.025% 1.78 %
FSSVX (Fidelity Small Cap Index Premium) 9.82 % ER 0.025% 1.76 %


Her Traditional IRA at Schwab 9.26 % of our total invested funds
SWAGX (SCHWAB US AGGREGATE BOND INDEX) 10.32% 0.04% 0.88 %
SWISX (SCHWAB INTL INDEX FUND) 25.66% 0.06% 2.17 %
SWTSX (SCHWAB TOTAL STOCK MKT INDEX) 64.01% 0.03% 6.04 %

I know this is a lot, and I can't seem to format all this info for better readability. My main question is, what to have in the taxable account? How can it be simplified? I'm fine with the DFA funds but as we discussed in my original "portfolio help thread" it may get messy since I can't buy more of those funds. In that thread one poster said Schwab does still let him reinvest dividends into DFA funds even though he no longer has a FA to buy more DFA.

Does it make sense to get rid of all bond funds and the high ER funds (TweedyBrown and LoomisSayles)? I'm a little overwhelmed. I did have this from Chip from my other thread:
While I can't say anything with certainty, I suspect these funds will likely be on the chopping block for tax efficiency reasons:

DIPSX (DFA INFLATION PROTECTED SECURITIES) 2.67% 0.12%
DFIHX (DFA ONE YEAR FIXED INCOME) 1.64% 0.17%
DFGBX (DFA FIVE YEAR GLBL FIXED INCOME) 5.27% 0.27%
LSBDX (LOOMIS SAYLES BOND FUND) 5.36% 0.66%
DFGEX (DFA GLOBAL REAL ESTATE SECURITIES) 6.97% 0.24%
I feel pretty clear that with 20% of all invested funds in international stock that should be reduced.

After writing all this I'm sure there is more information needed. Please let me know.

tenkuky
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Re: Ready to Simplify Taxable Account--advice, please

Post by tenkuky » Wed Sep 26, 2018 8:14 am

An important piece to understand before you simplify your taxable account is what is the stepped-up basis from time of inheritance to now.
This will help in determining how much cap gains you will realize due to this, and if there are cap losses you can harvest.
This will add to your tax burden, and it may be more feasible to space this out.

That being said, at Schwab you can reach a 3-fund simplicity with very low expenses (< 6 bps)
SWSTX (total market index fund)
SWISX (tot intnl)
SWAGX (total bond fund)
Just like the tIRA you already have!

I know you are asking about taxable, but look at HIS 403b at Fido, awfully high ERs, doesn't he have better choices there? Or can he consolidate into the TIAA?

tibbitts
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Re: Ready to Simplify Taxable Account--advice, please

Post by tibbitts » Wed Sep 26, 2018 8:19 am

In taxable taxes are almost all that matter so that's why I have TSM, 500, and TM Cap App - so annoying. Not that I'm wishing for the gains to go away so I can consolidate.

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vineviz
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Re: Ready to Simplify Taxable Account--advice, please

Post by vineviz » Wed Sep 26, 2018 8:40 am

Here's what I'd do.

Her Taxable Account at Schwab 21.74 % of total invested funds
7% DFSCX (DFA US MICRO CAP PORT INSTL) 4.86% 0.52% 1.12
7% DTMIX (DFA TAX MANAGED INTL VALUE) 1.9% 0.53% 0.38
8% DFGBX (DFA FIVE YEAR GLBL FIXED INCOME) 5.27% 0.27% 1.10

His 401K TIAA_CREF 29.49 % of total invested funds
9% TIAA-CREF International Equity Index Inst Cl TCIEX Multiple 0.06 8.60
20% TIAA-CREF S & P 500 Index Fund Inst Multiple 0.06 21.44

His 403B TIAA  20.19 % of total invested funds
20% TIAA-Cref Bond Index Fund Instl TBIIX Multiple 21.79

His 403B Fidelity 1% of total invested funds
1% Fidelity Contrafund FCNKX(FCNTX) 76.1 % ER 0.74

Her 401K at Fidelity 18.32 % of total invested funds 
18% FUSVX (Fidelity 500 Index Fund Premium Class) 81.26 % ER 0.015% 14.44 %

Her Traditional IRA at Schwab 9.26 % of total invested funds
9% SWTSX (SCHWAB TOTAL STOCK MKT INDEX) 64.01% 0.03% 6.04 %

This is roughly 45% US stocks, 25% international stocks, and 30% bonds.
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch

livesoft
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Re: Ready to Simplify Taxable Account--advice, please

Post by livesoft » Wed Sep 26, 2018 9:09 am

I like Duckie's vineviz (oops! sorry!) suggestion.

This can be overwhelming, so I suggest that one doesn't have to place 10 trades all at the same time nor even all on the day nor all in the same week. I recommend that you simply try to do one today and see how it goes. Then do some others. For instance, sell the Loomis Sayles bond fund today (it probably has little or no gains to pay taxes on since 2015) and buy the bond fund of your choice or leave in cash. That should get the ball rolling and assuage any fears and anxiety that you might have.
Last edited by livesoft on Wed Sep 26, 2018 12:36 pm, edited 1 time in total.
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Topic Author
Sagefemme
Posts: 81
Joined: Mon Mar 12, 2018 9:31 pm

Re: Ready to Simplify Taxable Account--advice, please

Post by Sagefemme » Wed Sep 26, 2018 11:42 am

tenkuky wrote:
Wed Sep 26, 2018 8:14 am
An important piece to understand before you simplify your taxable account is what is the stepped-up basis from time of inheritance to now.
This will help in determining how much cap gains you will realize due to this, and if there are cap losses you can harvest.
This will add to your tax burden, and it may be more feasible to space this out.

That being said, at Schwab you can reach a 3-fund simplicity with very low expenses (< 6 bps)
SWSTX (total market index fund)
SWISX (tot intnl)
SWAGX (total bond fund)
Just like the tIRA you already have!

I know you are asking about taxable, but look at HIS 403b at Fido, awfully high ERs, doesn't he have better choices there? Or can he consolidate into the TIAA?
tenkuky, yes the ER for Contrafund and Fidelity Overseas (his 403B Fido) are stupid high, but given the very small proportion of our funds in that 403B I thought I'd leave changing that for a bit later, after cleaning up some of the rest of it. And also yes, he might want to roll it into the TIAA 403B.

As far as the stepped-up basis goes, does just looking at my current positions on the Schwab website tell me this? For example (taken directly from today's Market Value tab online):

Fund * * Cost Basis * * Market Value * * Gain/Loss

LSBDX ... 30,533........ 29,480.................. (1,053)
TBGVX... 31,831........ 37,840................... 5,978

I am assuming the cost basis listed is from the day my mom died and this account became mine.

Livesoft wrote:
This can be overwhelming, so I suggest that one doesn't have to place 10 trades all at the same time nor even all on the day nor all in the same week. I recommend that you simply try to do one today and see how it goes. Then do some others. For instance, sell the Loomis Sayles bond fund today (it probably has little or no gains to pay taxes on since 2015) and buy the bond fund of your choice or leave in cash. That should get the ball rolling and assuage any fears and anxiety that you might have.
Thank you. Livesoft, for the step by step advice, which is what I really need. Perhaps I should sell the Loomis Sayles today? But don't I want to buy something NOT BONDS for this taxable account, for efficiency? Don't I want all bonds out of taxable, since I have plenty other places to put them?

Thanks for helping me piecemeal with this.

Topic Author
Sagefemme
Posts: 81
Joined: Mon Mar 12, 2018 9:31 pm

Re: Ready to Simplify Taxable Account--advice, please

Post by Sagefemme » Wed Sep 26, 2018 11:44 am

vineviz wrote:
Wed Sep 26, 2018 8:40 am
Here's what I'd do.

Her Taxable Account at Schwab 21.74 % of total invested funds
7% DFSCX (DFA US MICRO CAP PORT INSTL) 4.86% 0.52% 1.12
7% DTMIX (DFA TAX MANAGED INTL VALUE) 1.9% 0.53% 0.38
8% DFGBX (DFA FIVE YEAR GLBL FIXED INCOME) 5.27% 0.27% 1.10

His 401K TIAA_CREF 29.49 % of total invested funds
9% TIAA-CREF International Equity Index Inst Cl TCIEX Multiple 0.06 8.60
20% TIAA-CREF S & P 500 Index Fund Inst Multiple 0.06 21.44

His 403B TIAA  20.19 % of total invested funds
20% TIAA-Cref Bond Index Fund Instl TBIIX Multiple 21.79

His 403B Fidelity 1% of total invested funds
1% Fidelity Contrafund FCNKX(FCNTX) 76.1 % ER 0.74

Her 401K at Fidelity 18.32 % of total invested funds 
18% FUSVX (Fidelity 500 Index Fund Premium Class) 81.26 % ER 0.015% 14.44 %

Her Traditional IRA at Schwab 9.26 % of total invested funds
9% SWTSX (SCHWAB TOTAL STOCK MKT INDEX) 64.01% 0.03% 6.04 %

This is roughly 45% US stocks, 25% international stocks, and 30% bonds.
Vineviz, same question about your scenario: What about getting all bonds out of taxable? Is there something I'm missing about "bonds out of taxable" as a goal?

Thanks in advance.

tenkuky
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Joined: Sun Dec 14, 2014 4:28 pm

Re: Ready to Simplify Taxable Account--advice, please

Post by tenkuky » Wed Sep 26, 2018 12:07 pm

Depends on whether Schwab received the basis accurately from the previous holding company, or was it always with Schwab?
Hopefully this was recorded as the basis on date of death for step-up, but check with Schwab to be sure.
Also, you can look up the NAV on that date to reconfirm.
It gets tricky when there are many transactions at varying prices, but Schwab should have accurate recording.

Regarding bonds, it depends on your tax bracket and state tax rate.
I have muni intermediate term bonds in my taxable, and Schwab lets you buy VTEB for the usual $4.95 commission.
If you have decent assets with them and ask nice, I have gotten a few "free trades" for the ETFs.

Highfeehater
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Re: Ready to Simplify Taxable Account--advice, please

Post by Highfeehater » Wed Sep 26, 2018 12:10 pm

Great advice by Livesoft! Take a bite at a time. I dealt with the " head swelling" with all the portfolio changes over the last few months after dropping an "advisor". Listen patiently to all the advice you will get(and you will get it), choose your path and pick away at it intelligently. Your confidence will build and your portfolio will be working for you before you know it.

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vineviz
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Re: Ready to Simplify Taxable Account--advice, please

Post by vineviz » Wed Sep 26, 2018 12:23 pm

Sagefemme wrote:
Wed Sep 26, 2018 11:44 am
vineviz wrote:
Wed Sep 26, 2018 8:40 am
Here's what I'd do.

Her Taxable Account at Schwab 21.74 % of total invested funds
7% DFSCX (DFA US MICRO CAP PORT INSTL) 4.86% 0.52% 1.12
7% DTMIX (DFA TAX MANAGED INTL VALUE) 1.9% 0.53% 0.38
8% DFGBX (DFA FIVE YEAR GLBL FIXED INCOME) 5.27% 0.27% 1.10

His 401K TIAA_CREF 29.49 % of total invested funds
9% TIAA-CREF International Equity Index Inst Cl TCIEX Multiple 0.06 8.60
20% TIAA-CREF S & P 500 Index Fund Inst Multiple 0.06 21.44

His 403B TIAA  20.19 % of total invested funds
20% TIAA-Cref Bond Index Fund Instl TBIIX Multiple 21.79

His 403B Fidelity 1% of total invested funds
1% Fidelity Contrafund FCNKX(FCNTX) 76.1 % ER 0.74

Her 401K at Fidelity 18.32 % of total invested funds 
18% FUSVX (Fidelity 500 Index Fund Premium Class) 81.26 % ER 0.015% 14.44 %

Her Traditional IRA at Schwab 9.26 % of total invested funds
9% SWTSX (SCHWAB TOTAL STOCK MKT INDEX) 64.01% 0.03% 6.04 %

This is roughly 45% US stocks, 25% international stocks, and 30% bonds.
Vineviz, same question about your scenario: What about getting all bonds out of taxable? Is there something I'm missing about "bonds out of taxable" as a goal?

Thanks in advance.
The "no bonds in taxable" mantra is simple but it's not always right. In many cases, you are actually better off with bonds in taxable accounts. The "bonds out of taxable" may be a fine goal for you, but please don't obsess over it. In your case, DFGBX is a relatively low cost and would be are to replicate in you tax-advantaged plans. It's only 8% of the portfolio that I constructed, so I don't think I'd sweat the tax-efficiency question too much. Your portfolio has MANY issues that are greater than that one, IMHO.
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch

Topic Author
Sagefemme
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Re: Ready to Simplify Taxable Account--advice, please

Post by Sagefemme » Wed Sep 26, 2018 12:33 pm

tenkuky wrote:
Wed Sep 26, 2018 12:07 pm
Depends on whether Schwab received the basis accurately from the previous holding company, or was it always with Schwab?
Hopefully this was recorded as the basis on date of death for step-up, but check with Schwab to be sure.
Also, you can look up the NAV on that date to reconfirm.
It gets tricky when there are many transactions at varying prices, but Schwab should have accurate recording.

Regarding bonds, it depends on your tax bracket and state tax rate.
I have muni intermediate term bonds in my taxable, and Schwab lets you buy VTEB for the usual $4.95 commission.
If you have decent assets with them and ask nice, I have gotten a few "free trades" for the ETFs.
This account was always at Schwab, so I should have accurate basis. I also have paper statements on the account from the day my mom died.

I have 10 free trades right now at Schwab (not sure where in my account that is documented, but I have a record of the "chat" in which the account representative gifted the free trades to me, to compensate for a SNAFU that was going on at that time).

livesoft
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Re: Ready to Simplify Taxable Account--advice, please

Post by livesoft » Wed Sep 26, 2018 12:39 pm

Sagefemme wrote:
Wed Sep 26, 2018 11:42 am
Thank you. Livesoft, for the step by step advice, which is what I really need. Perhaps I should sell the Loomis Sayles today? But don't I want to buy something NOT BONDS for this taxable account, for efficiency? Don't I want all bonds out of taxable, since I have plenty other places to put them?

Thanks for helping me piecemeal with this.
So sell Loomis Sayles today and let the money go to settlement fund (i.e. cash). Both are fixed income. Do not use the cash to buy a different bond fund in taxable.

After today, you can decide what the next step should be. I have a good idea of what it might be, but I'll let you think overnight about it. :)
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tenkuky
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Re: Ready to Simplify Taxable Account--advice, please

Post by tenkuky » Wed Sep 26, 2018 12:40 pm

Sagefemme wrote:
Wed Sep 26, 2018 12:33 pm
This account was always at Schwab, so I should have accurate basis. I also have paper statements on the account from the day my mom died.

I have 10 free trades right now at Schwab (not sure where in my account that is documented, but I have a record of the "chat" in which the account representative gifted the free trades to me, to compensate for a SNAFU that was going on at that time).
perfect! The free trades doesn't show up on your screen, but you will see it just before execution as 0.00 in fees/charges.
They are very good about honoring that, but I too saved the chat record.

I agree with knocking off the high Loomis today and get a taste of transactions (including settlement etc). Plan for another fund next week.
I like vineviz' construction but actually prefer to go rock-bottom cost with either VTEB or Schwab bond index.
You didn't mention the gains/loss for other funds (except for Tweedy and Loomis), any chance you could clean in there, like DFSMX sell? That is also bond.
I agree (as I always do) with livesoft and don't buy till next week.

Topic Author
Sagefemme
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Re: Ready to Simplify Taxable Account--advice, please

Post by Sagefemme » Wed Sep 26, 2018 12:45 pm

Wed Sep 26, 2018 10:44 am
vineviz wrote: ↑Wed Sep 26, 2018 7:40 am
Here's what I'd do.

Her Taxable Account at Schwab 21.74 % of total invested funds
7% DFSCX (DFA US MICRO CAP PORT INSTL) 4.86% 0.52% 1.12
7% DTMIX (DFA TAX MANAGED INTL VALUE) 1.9% 0.53% 0.38
8% DFGBX (DFA FIVE YEAR GLBL FIXED INCOME) 5.27% 0.27% 1.10
I may be missing something here, but my understanding is I can't buy more of these funds as they were bought by financial advisors who no longer manage the account. Dimensional Funds can't be purchased by me alone, is my understanding, so I can only have the number of shares I have currently and no more. This is why I think I 'm headed for a more comprehensive overhaul of this account.

Does that seem right?

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vineviz
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Re: Ready to Simplify Taxable Account--advice, please

Post by vineviz » Wed Sep 26, 2018 12:53 pm

Sagefemme wrote:
Wed Sep 26, 2018 12:45 pm
Wed Sep 26, 2018 10:44 am
vineviz wrote: ↑Wed Sep 26, 2018 7:40 am
Here's what I'd do.

Her Taxable Account at Schwab 21.74 % of total invested funds
7% DFSCX (DFA US MICRO CAP PORT INSTL) 4.86% 0.52% 1.12
7% DTMIX (DFA TAX MANAGED INTL VALUE) 1.9% 0.53% 0.38
8% DFGBX (DFA FIVE YEAR GLBL FIXED INCOME) 5.27% 0.27% 1.10
I may be missing something here, but my understanding is I can't buy more of these funds as they were bought by financial advisors who no longer manage the account. Dimensional Funds can't be purchased by me alone, is my understanding, so I can only have the number of shares I have currently and no more. This is why I think I 'm headed for a more comprehensive overhaul of this account.

Does that seem right?
I'm actually not entirely sure. My understanding is that you should be able to add to existing positions, but I could very well be incorrect.

If that's the case, I probably would replace all of the DFA funds with Vanguard Total Stock Market ETF (VTI) and adjust the mix in the tax-deferred accounts to bring the bonds and international stocks up to their targets.
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch

Topic Author
Sagefemme
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Re: Ready to Simplify Taxable Account--advice, please

Post by Sagefemme » Wed Sep 26, 2018 1:05 pm

tenkuky wrote:
Wed Sep 26, 2018 12:40 pm


perfect! The free trades doesn't show up on your screen, but you will see it just before execution as 0.00 in fees/charges.
They are very good about honoring that, but I too saved the chat record.

I agree with knocking off the high Loomis today and get a taste of transactions (including settlement etc). Plan for another fund next week.
I like vineviz' construction but actually prefer to go rock-bottom cost with either VTEB or Schwab bond index.
You didn't mention the gains/loss for other funds (except for Tweedy and Loomis), any chance you could clean in there, like DFSMX sell? That is also bond.
I agree (as I always do) with livesoft and don't buy till next week.
Other funds with losses:

DFIHX ($54); DFSMX ($47); DFEQX ($216); DFGBX ($239)

With the Loomis $1053 total loss in these five funds is $1609.

And there is no tax loss harvesting to be done since I don't want to buy anything similar, correct??

Part of me wants to sell a bunch of funds and sneak off to Hawaii and not deal with it! :happy

I do trust you all that if I do this stuff little by little and see the results, it will stop seeming like a foreign language to me. I do have a decent brain, or at least I did 20 or 30 years ago.......

Topic Author
Sagefemme
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Re: Ready to Simplify Taxable Account--advice, please

Post by Sagefemme » Wed Sep 26, 2018 1:10 pm

vineviz wrote:
Wed Sep 26, 2018 12:53 pm


I'm actually not entirely sure. My understanding is that you should be able to add to existing positions, but I could very well be incorrect.

If that's the case, I probably would replace all of the DFA funds with Vanguard Total Stock Market ETF (VTI) and adjust the mix in the tax-deferred accounts to bring the bonds and international stocks up to their targets.
I'll call Schwab and confirm yes or no, re: may I add to existing DFA positions. Thank you for all your help!

Topic Author
Sagefemme
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Re: Ready to Simplify Taxable Account--Ongoing advice, please

Post by Sagefemme » Tue Oct 23, 2018 6:00 pm

Livesoft wrote:
So sell Loomis Sayles today and let the money go to settlement fund (i.e. cash). Both are fixed income. Do not use the cash to buy a different bond fund in taxable.

After today, you can decide what the next step should be. I have a good idea of what it might be, but I'll let you think overnight about it. :)
Well a week has turned into a month (in terms of me getting back to post). But I did sell the Loomis Sayles on October 2, and my Schwab account reflects a long term loss of $1031. Proceeds are in cash.

In the meantime I did something else that may or may not have been advisable......on October 9 when the market was starting its current wobble, I thought, since I'm way off my AA anyway (need more bonds) why not adjust right now in my 401K since there is no cost to making that shift? It's not market timing if I sell all the equities in the account (it was 100% stocks) and buy a bond fund to get closer to the AA I want, right? :)

So now I'm at 61% equities and 39% bonds across all accounts. Probably muddied the waters further but it can be reversed or altered easily.

Livesoft, I'm glad you have a good idea what I should do next in taxable, because I sure don't. Suggestions welcome. With rationale, if you please, since I hope to be learning why I'm doing what I'm doing as I go!

And TLH of the loss on LSBDX is something I'll make happen when I do my taxes, yes? As the loss will be reflected on my 1099? Thanks, all.

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