location vs allocation

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Topic Author
kikie
Posts: 339
Joined: Sat Apr 09, 2011 4:37 pm

location vs allocation

Post by kikie »

I am considering selling off my TSM in taxable account and living off the cash;

in order to max out my employer limits of $17k / year ( which, btw, offers only VG institutional index as a decent simi-TSM option); so I would lose TSM for the S&P 500 that is in the VG institutional index.

Employer has both Roth and Trad 403b;
my current Roth portfolio is 25% of my TSAs overall.

my question: if I were to do this......
1)
do I : month over month sell off the TSM in proportion to the 20-30% i'll have to withhold from my salary ? or do it in a lump-sum and park it in money market fund?

2)
Are there ANY targets for how much to hold in Roth vs. TIRA(403b), ;

I have other holdings I could live off for 10 years taxable already, but feel like I would like the access to the Roth money before age 65 just in case.

my marginal tax rate is 25%; age mid 40s, work another 5-10 years.

mahalo
Those who know do not speak; those who speak do not know.
DSInvestor
Posts: 11362
Joined: Sat Oct 04, 2008 11:42 am

Re: location vs allocation

Post by DSInvestor »

Are your contributions to 403b Roth or Traditional? If you contribute to Traditional 403b only, you'll have a bigger tax break which means you may not need as much from your taxable account to meet expenses.

What other holdings do you have in taxable and do you reinvest dividends? If you stop reinvesting dividends, that may reduce the need to sell shares. Also consider spending down savings accounts/MMFs before selling TSM. There are no tax consequences for spending down savings accts/MMFs.

If you have any tax inefficient holdings in taxable, it may be better to sell those instead and relocate them in tax advantaged.
Last edited by DSInvestor on Thu Mar 15, 2012 2:29 pm, edited 1 time in total.
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YDNAL
Posts: 13774
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Location: Biscayne Bay

Re: location vs allocation

Post by YDNAL »

paix wrote:I am considering selling off my TSM in taxable account and living off the cash; in order to max out my employer limits of $17k / year ( which, btw, offers only VG institutional index as a decent simi-TSM option); so I would lose TSM for the S&P 500 that is in the VG institutional index.
"In order to max" contribution to $17K means that you don't presently.

In theory, this is a good - moving to tax-advantaged and creating space. In reality, any sale from a Taxable account must first consider taxes due. What are your gains/losses in TSM?
Landy | Be yourself, everyone else is already taken -- Oscar Wilde
Topic Author
kikie
Posts: 339
Joined: Sat Apr 09, 2011 4:37 pm

Re: location vs allocation

Post by kikie »

tink i've figured it out
Last edited by kikie on Fri Mar 16, 2012 12:51 am, edited 2 times in total.
Those who know do not speak; those who speak do not know.
Topic Author
kikie
Posts: 339
Joined: Sat Apr 09, 2011 4:37 pm

Re: location vs allocation

Post by kikie »

YDNAL wrote:
paix wrote:I am considering selling off my TSM in taxable account and living off the cash; in order to max out my employer limits of $17k / year ( which, btw, offers only VG institutional index as a decent simi-TSM option); so I would lose TSM for the S&P 500 that is in the VG institutional index.
"In order to max" contribution to $17K means that you don't presently.
.........correct, If I did I'd 'have nothing to live on' ; things changed in 2010, when my father passedaway, alas, and I've always just lived on my income......
YDNAL wrote: In theory, this is a good - moving to tax-advantaged and creating space. In reality, any sale from a Taxable account must first consider taxes due.
What are your gains/losses in TSM?
........unrealized +$1,300; realized -$6,000 (minus) :) all short term (unrealized should change to LT in July, 2012)


sorry if editing is generating emails
Those who know do not speak; those who speak do not know.
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