Do you invest in a taxable account?

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Do you invest in a taxable account?

Yes
306
84%
No
58
16%
 
Total votes: 364

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abuss368
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Do you invest in a taxable account?

Post by abuss368 » Sun Jan 05, 2014 5:23 pm

I am curious of Bogleheads who have investments in a taxable account.

Can you provide some information in terms of how the taxable account fits into your overall investment strategy and allocations?

Do you maximize tax advantage accounts such as IRAs and 401(k)s before investing in taxable?

Please provide any other additional information that you believe would benefit this thread.

Note: Simple poll with a "yes" or "no" option and open to the different investment strategies.

Thanks!
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MichaelM24
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Re: Do you invest in a taxable account?

Post by MichaelM24 » Sun Jan 05, 2014 5:26 pm

Yes, but I max out my 401k, Roth IRA, and HSA first.

livesoft
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Re: Do you invest in a taxable account?

Post by livesoft » Sun Jan 05, 2014 5:29 pm

Of course we invest in taxable account. We have done so after maximizing tax-advantaged contributions. We do not contribute much to taxable accounts since kid started college though, but what we have there is cooking along just fine.

What's in taxable? Tax-efficient equity funds like VEU, VEA, VWO, and VLCAX, plus some VBR and VSS. No bonds.

How does it fit? It fits just fine. One can probably guess that tax-advantaged has bond funds, US funds, and foreign funds.
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leo383
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Re: Do you invest in a taxable account?

Post by leo383 » Sun Jan 05, 2014 5:30 pm

Yes.

We try every year to max Roths and 401(k) as best we can (wife has very, very unpredictable income every year, I don't have a regular income).

For a few years, all we had was our Roths as tax exempt, so I put money away in taxable accounts. I keep it close to our 80/20 allocation. Tax Exempt Intermediate and Total Stock/Total Int'l.

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pjstack
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Re: Do you invest in a taxable account?

Post by pjstack » Sun Jan 05, 2014 5:33 pm

I really have few other options. I live on a military pension and do not have "earned income".

My only tax deferred option is I-Bonds (which I have bought, but paper I-Bonds only).
pjstack

MoonOrb
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Re: Do you invest in a taxable account?

Post by MoonOrb » Sun Jan 05, 2014 5:36 pm

Yes. Max out tax advantaged accounts first.

Zagor
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Re: Do you invest in a taxable account?

Post by Zagor » Sun Jan 05, 2014 5:42 pm

Both the wife and I max out our TSP/401k and Roth IRAs and once a year (December) we add funds that we have saved over the year and do not need.

IlliniDave
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Re: Do you invest in a taxable account?

Post by IlliniDave » Sun Jan 05, 2014 5:49 pm

Taxable account has a dual role for me: bankrolling (potential) early/semi-retirement and as a place to invest savings once my tax deferred space is maxed out.
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cfs
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Re: Do you invest in a taxable account?

Post by cfs » Sun Jan 05, 2014 6:04 pm

Leaders, good day

Thanks for asking. The answer is Yes. In our boring SWAN we max out 401(k), 457(b) Traditional, 457(b) Roth , and IRAs. In the taxable side we have a single fund, the Vanguard Tax-Managed Balanced Fund Admiral Shares (VTMFX), this is where we place the investable part of our take-home-money, and it should be noted that this fund is a 50/50 with the bond side in munis and the equity side in low interest paying stocks, this work for us, others are more or less aggressive in their taxable side.

Thanks for reading.
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Peter Foley
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Re: Do you invest in a taxable account?

Post by Peter Foley » Sun Jan 05, 2014 6:08 pm

Yes we have a taxable account. Looking back I have to admit it was an afterthought. Our savings plan was basically to max out our deferred accounts. When our kids graduated from college and got jobs we probably started adding to it more. It was not a conscious decision. It got a bit of a boost with a small inheritance in 2009. We have always kept it fully invested in either the Schwab 1000 fund or, post recession -post tax loss harvesting, in the Schwab Total Stock Market fund.

I've been retired a year and a half. I turned off dividend and capital gains reinvesting when I retired. We will probably tap dividends and capital gains for income for the first time this year.

Sriracha
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Re: Do you invest in a taxable account?

Post by Sriracha » Sun Jan 05, 2014 6:12 pm

We are another "yes" vote. Indeed, at this point, our joint taxable account is larger than any of our individual tax-advantaged accounts, all of which we still max out. Contents are boring: Total Stock Market and Total International. There's a little FTSE All World Except US that I stopped buying years ago to concentrate on Total International. If foreign stocks tank, I'll TLH the FTSE. For a while, I had some VG intermediate CA munis, too, but I became uncomfortable with with risks to capital and so now all my bonds are in tax-advantaged.
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Bracket
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Re: Do you invest in a taxable account?

Post by Bracket » Sun Jan 05, 2014 6:21 pm

Yes. We max out 401k and backdoor Roth x2, then taxable. We have one asset allocation spread over all our accounts, (old TSP, old 401k, taxable, etc.), and I use the taxable account to access those asset classes unavailable to me in my tax-advantaged accounts. And to save more than the limits imposed on my 401k and IRAs. Two taxable accounts actually, Fidelity for iShares and Vanguard for, well, Vanguard. To avoid commissions.

Right now it's mostly VTIAX, VWO, VSS, and VSIAX, along with IJS over at Fidelity. (that's total international, emerging markets, int'l small cap, and small cap value, along with iShares small cap value at Fidelity)
Also small holdings in Vanguard Int Term Tax Exempt, and VTSMX.

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tylerdurden
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Re: Do you invest in a taxable account?

Post by tylerdurden » Sun Jan 05, 2014 6:46 pm

Yep, we have taxable accounts as well. Because of several reasons (that I won't go into here), 89% of our net worth is actually in taxable accounts; only ~6% is in retirement accounts.
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tetractys
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Re: Do you invest in a taxable account?

Post by tetractys » Sun Jan 05, 2014 7:07 pm

Yes I have some taxable accounts, including ibonds. That's all I'll say about it because every worthwhile point has already been given above. -- Tet

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Kosmo
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Re: Do you invest in a taxable account?

Post by Kosmo » Sun Jan 05, 2014 7:14 pm

So far I'm the only "no" response. Don't max out all tax advantaged accounts yet.

ResearchMed
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Re: Do you invest in a taxable account?

Post by ResearchMed » Sun Jan 05, 2014 7:25 pm

Kosmo wrote:So far I'm the only "no" response. Don't max out all tax advantaged accounts yet.
We are another "no", at least until later this year.

We've both got all retirement savings now invested in 403b accounts (the biggest pots by far), and some in assorted IRA's, and we've max'd those out for a very long time.

This is the first year one of us will need to start mandatory withdrawals, but it will be a rather small amount, given that DH is still employed.
That also means that Employer still contributes to the 403b (no match required) and I think he can still contribute the max here also.

But we'll start to put the withdrawn monies into a new taxable investment account, even though it's not much. But as a matter of principle, we don't want to spend any of that money yet.

What I need to check on is whether he can continue to contribute to an IRA/SEP-IRA/etc., for his ongoing consulting, which is about the same $$ as his salary.

So at some point in 2014, our answer to this question will change to "yes".

RM

Geologist
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Re: Do you invest in a taxable account?

Post by Geologist » Sun Jan 05, 2014 7:33 pm

One reason to invest in a taxable account is so that when you want to convert tax-deferred money to a Roth account, you will have funds outside the tax-deferred account to pay the tax bill.

bayview
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Re: Do you invest in a taxable account?

Post by bayview » Sun Jan 05, 2014 7:39 pm

Kosmo wrote:So far I'm the only "no" response. Don't max out all tax advantaged accounts yet.
We must have taken the poll at the same time. :D

We don't invest in taxable accounts, because we don't have the extra cash.

If we did (windfall/inheritance, etc.), we would, after maximizing the others first.
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri

John3754
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Re: Do you invest in a taxable account?

Post by John3754 » Sun Jan 05, 2014 7:43 pm

My wife and I both max out 401ks, Roth IRAs, and I bond contributions, then contribute to a joint taxable account.

skylar
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Re: Do you invest in a taxable account?

Post by skylar » Sun Jan 05, 2014 8:48 pm

I'm another "no". Max'ing out my 403b, 457b, Roth IRA and HSA; and my wife's 401k and Roth IRA, is enough for us.

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tuningfork
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Re: Do you invest in a taxable account?

Post by tuningfork » Sun Jan 05, 2014 9:06 pm

I answered yes, although I just recently started early-retirement so I'm no longer investing new money. I invested in the tax advantaged accounts to the max. The taxable investment accounts are what I am living on until I start taking SS and RMDs, so without the taxable investments I probably would not have been able to retire as early as I did (55) (plug for not spending every after-tax penny you earn).

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Toons
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Re: Do you invest in a taxable account?

Post by Toons » Sun Jan 05, 2014 9:09 pm

Maxes out retirement plans for years,opened taxable accounts many years go :happy
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investor1
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Re: Do you invest in a taxable account?

Post by investor1 » Sun Jan 05, 2014 9:10 pm

No because my tax advantaged space is not full.

I might consider doing so even without my tax advantaged space being full if the funds were not intended for retirement because I like to keep my retirement funds separate from other savings. However, my income is not high enough to provide me with funds that I am willing to take that risk while covering current expenses and saving in more liquid funds for known short-medium term future expenses.

thomasbayarea
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Re: Do you invest in a taxable account?

Post by thomasbayarea » Sun Jan 05, 2014 9:11 pm

No.

We contribute annually:
2x 401(k)s = $35,000
2x backdoor Roth IRAs = $11,000
1 HSA = $5,000
2x 529 plans = $14,400

No money left for taxable!

spencer99
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Re: Do you invest in a taxable account?

Post by spencer99 » Sun Jan 05, 2014 9:58 pm

No taxable account for me. With pre-tax options of 403, 457, and IRA I have way more tax-advantaged space than I have available income.

S

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GerryL
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Re: Do you invest in a taxable account?

Post by GerryL » Sun Jan 05, 2014 10:29 pm

Voted yes.
Why? I max out my retirement accounts. I live on less than half my income. I have plenty of stuff. I donate to charities. What else am I going to do with it? My biggest chunk of taxable investment is in Vanguard Balanced Index fund. A little less in company and inherited stock.

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grabiner
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Re: Do you invest in a taxable account?

Post by grabiner » Sun Jan 05, 2014 10:36 pm

I invest in a taxable account, both because I max out my retirement accounts, and because I needed taxable savings to buy a home.

My taxable account is part of my asset allocation, but it contains only the most tax-efficient investments: Total Stock Market, Developed Markets Index (used to be Tax-Managed International), Emerging Markets Index, FTSE All-World Ex-US Small-Cap (VSS), and iShares Emerging Markets Small-Cap (EEMS). I would also be willing to hold Tax-Managed Small-Cap in my taxable account, but I don't need it because I have a small-cap fund in one of my retirement accounts. All my value funds, bonds, and REITs are in retirement accounts, and I am willing to hold less than my target weight in value if I don't have enough tax-deferred room for the value funds.
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Ged
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Re: Do you invest in a taxable account?

Post by Ged » Sun Jan 05, 2014 10:42 pm

Yes. It's sort of an account that was for emergency funds that got bigger during a time period when I worked for a company that no 401K plus it had an inheritance dumped into it.

It contains two investments. Cash for the emergency fund component (keeps growing due to dividends) and a chunk of VT ETF. I used to have other stuff but discussions here plus personal experience led me to realize that rebalancing in taxable was something that was creating unnecessary complexity.

Eventually this will be used to pay taxes during ROTH conversion from my tIRAs.

sscritic
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Re: Do you invest in a taxable account?

Post by sscritic » Sun Jan 05, 2014 11:12 pm

I sold house. I was retired. I couldn't eat the money, so I invested it. It is larger than my tax advantaged accounts. So rather than asking how it fits in with my tax advantaged accounts, it makes more sense to ask how my tax advantaged accounts fit in with it.

* I still lie. I had a taxable account before I sold a house. Selling the house just made it much bigger.

MarginalCost
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Re: Do you invest in a taxable account?

Post by MarginalCost » Sun Jan 05, 2014 11:35 pm

grabiner wrote:I invest in a taxable account, both because I max out my retirement accounts, and because I needed taxable savings to buy a home.
Exactly. Even without maxing out tax-advantaged accounts, there are lots of goals that can't easily be accomplished through solely tax-advantaged accounts. The Boggleheads Forum seems to be overweight on people who primarily see investing as a means to retirement.

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BHCadet
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Re: Do you invest in a taxable account?

Post by BHCadet » Sun Jan 05, 2014 11:40 pm

Yes, but no new money to the taxable account this year (2013) because any money left is going to my kid's college expense.
She is a freshmen.

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rob
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Re: Do you invest in a taxable account?

Post by rob » Sun Jan 05, 2014 11:40 pm

* I am limited to 10% into my 401K and so cannot get close to maxing it (not that I could afford to save that much anyway).
* Roths are maxed in most years but not in others - depends on bonus really.
* Taxable are for some liquidity and also due to limits on 401K over years.
* I also like to have different types of accounts for tax diversificatiobn purposes.
* I treat "retirement" as a pool across all account types.
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ResearchMed
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Re: Do you invest in a taxable account?

Post by ResearchMed » Sun Jan 05, 2014 11:46 pm

MarginalCost wrote:
grabiner wrote:I invest in a taxable account, both because I max out my retirement accounts, and because I needed taxable savings to buy a home.
Exactly. Even without maxing out tax-advantaged accounts, there are lots of goals that can't easily be accomplished through solely tax-advantaged accounts. The Boggleheads Forum seems to be overweight on people who primarily see investing as a means to retirement.
This could vary a lot with age.

For example, those of us who are at least 59.5 years old can withdraw money from tax-deferred accounts without penalty, so... why not stash the cash there until/unless it is needed?

Also, those of us who are older probably already did the "saving for a down payment" or for educational expenses financial planning.

RM

Geist
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Re: Do you invest in a taxable account?

Post by Geist » Mon Jan 06, 2014 12:47 am

I feel that it's only prudent for me to invest in a taxable account. I'm only 27, so money that I put away toward retirement is effectively inaccessible to me for the next 30 years (yes, yes, "Roth IRA contributions can be withdrawn!" .... whatever.) I do max my Roth IRA every year, but don't come close to maxing my TSP. In fact, my goal at this point is simply to half-max my TSP (which I haven't yet managed to do). Sure, I could max it out, but I prefer to manage my savings by allocating them toward short-/mid-/long-term goals. Retirement = long-term ... buying houses & paying for education = mid-term ... vacations & replacement cars = short term. Maxing my TSP would throw those plans out the window entirely, and sacrifice my ability to meet my short- & mid-term goals. I aim to save at least 15% of my gross income toward retirement, 10% for mid-term goals, 5% for short-term goals --- at least 30% of my gross income (often more, but this is my minimum). Making "only" $80k/yr, maxing my Roth IRA & TSP alone would consume 28% of that savings goal. Soooo.... about that car that needs to be replaced next year....?? This is why my taxable accounts (investments, cash savings, etc) make up about 40% of my total (non-home) assets.

This particular point of the commonly-held Boglehead "doctrines" has always escaped me. Certainly, you should prioritize retirement & other tax-advantaged accounts, but IMO, you should only abide by this priority to the extent that it meets your personal objectives & planning. Better to save for retirement in a Roth IRA than a non-deductible IRA or in a taxable account. But better to max out your 401k than to invest in a taxable account for buying a home? :annoyed And yet, in my observation, this seems to be a strongly held opinion, that tax advantaged savings are always maxed before saving elsewhere, bar none, or "you're making a costly/foolish mistake."

Oh well... personal observations as a devil's advocate -- YMMV. I take comfort in knowing that I'm meeting all of my financial goals, regardless of "wasted space" in tax-advantaged accounts.

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ofcmetz
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Re: Do you invest in a taxable account?

Post by ofcmetz » Mon Jan 06, 2014 12:58 am

No and I don't think I ever will.

We use only a portion of our available tax advantaged space each year.

As a married couple we are allowed $63,000 in tax advantaged space (ROTH's *2, 401K hers, 403B his, 457B his) between the two of us. This does not include my mandatory 9.5% pension contribution that is taken out pre-tax.
Last edited by ofcmetz on Mon Jan 06, 2014 1:01 am, edited 1 time in total.
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dotnet
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Re: Do you invest in a taxable account?

Post by dotnet » Mon Jan 06, 2014 1:01 am

I feel similar to Geist.

2013 is the first year I maxed my tax advantaged accounts fully. I am young and liquidity is more important to me at this point than retirement. I've always done a Roth conversion every year and matched my employer matching in the 401k... but locking money away for 30 years is scary when you have a brand new family.

I use tax efficient placement as much as possible, but the extra tax cost is essentially the price I'm willing to pay for liquidity.

I have an internet savings account (~1%) for emergency fund and ST plans
The rest I look at as one big portfolio between all my accounts (401k, wife 401k, roth IRAs, taxable, etc).

I do expect to maximize my tax advantage accounts from now on. But I do think it is strange for people straight out of school (assuming no school/credit card debt) to maximize funds they can't touch for thirty years at the complete expense of short term liquidity.

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telemark
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Re: Do you invest in a taxable account?

Post by telemark » Mon Jan 06, 2014 1:05 am

Yes, opened it when my 401K was a truly terrible plan with Ameriprise. Then the 401K switched to a better plan, so after funding that and my Roth IRA there isn't much left to go into taxable. I put a little into emerging markets last spring.
Last edited by telemark on Mon Jan 06, 2014 1:10 am, edited 1 time in total.

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ofcmetz
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Re: Do you invest in a taxable account?

Post by ofcmetz » Mon Jan 06, 2014 1:09 am

dotnet wrote:
But I do think it is strange for people straight out of school (assuming no school/credit card debt) to maximize funds they can't touch for thirty years at the complete expense of short term liquidity.

I think there is a difference between your investment portfolio and your savings used for short term things when you are an accumulator. The investments are longer term and are divided up according to your assets allocation. The savings (for things like home improvements, vacations, cars, and other short term goals) should definitely be in something liquid like a savings account or short term CD's. All investors in the accumulation stage need to be putting aside a sufficient amount of cash to meet these goals. This should allow them to avoid having to touch their tax advantaged accounts as well as their taxable equity investments for immediate purchases.
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3504PIR
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Re: Do you invest in a taxable account?

Post by 3504PIR » Mon Jan 06, 2014 2:55 am

I do and would invest in taxable even if we weren't already maxing out our deferred space. I plan to retire well before retirement age and the money in taxable needs to be available for that time prior to 59 1/2 and later when I take SS. I put $23,000 (17.5k + 5.5k catchup) into my 401k, $13,000 into our roths and $47,000 into taxable each year.

Dude2
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Re: Do you invest in a taxable account?

Post by Dude2 » Mon Jan 06, 2014 3:20 am

I use the Tax Managed Balanced fund from Vanguard. I am very satisfied with that approach.

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JoMoney
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Re: Do you invest in a taxable account?

Post by JoMoney » Mon Jan 06, 2014 5:04 am

Yes.
I'm fortunate enough to be able to max out my 401k including adding post-tax money up to the IRC 415(c)(1)(A) limit, also a non-deductible after tax IRA, and more left over to invest in a taxable account. It's generally not advised to put after-tax money in a retirement account because the current tax rates for capital gains and qualified dividends are much lower in a taxable account than what the ordinary income tax rates are on money taken out of a retirement account. Despite the current tax benefits, I prefer the tax-advantaged/deferred accounts because of the many options it gives me going forward:
*It's possible that future capital gains and dividends tax rates might change.
*If the investments find there way into bonds, there is no real difference in the tax treatment.
*I enjoy the current tax-deferred growth and compounding for hopefully many decades to come.
*I can make adjustments to my allocations, fund companies, etc.. without creating a taxable event.
*It gives me options to convert to ROTH in the future, if I find myself in a good situation to do so.
*There are trust like protections on retirement accounts, I don't really have concerns about liability problems, but it's nice to know there is some protection there.
*There is simplified beneficiary designation (retirement accounts don't need to go through probate when I die).
*In many assets based test, retirement accounts are not counted against you as available income/assets. I'm not expecting to go back to school or ask for government assistance, but you never know, it could turn out to be a nice feature.
*If I needed to, I can "borrow" from my 401(k) assets without incurring a taxable event, and pay the interest to myself.
*My employers plan allows me to withdraw the post-tax money at any time should I choose to do so, (but I would have to take a portion of gains along with it and incur a tax penalty on the portion that is gains).
*Early retirement/withdrawal without penalty is possible through IRA rollover and 72(t) SEPP
... I can probably come up with other features that make me favor the retirement accounts, but despite my strong preference for them, I still find money to invest beyond the legal limits of what I can contribute to retirement accounts. I've looked at Vanguard's variable annuity options, but with the additional expenses, strange tax treatment in some states, and various complexities, I'd rather just put it in a tax efficient index fund. The taxable account isn't my preferred choice or the core of my allocation, but having it will give me even more options in the future. Tax treatment diversification I suppose.
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SGM
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Re: Do you invest in a taxable account?

Post by SGM » Mon Jan 06, 2014 6:02 am

I started investing before there were IRAs. So I have always had taxable investments. Actually I invested whatever I didn't spend on 35 cents banana ice cream sodas every Friday after my paper route collections. I considered buying the ice cream sodas as "paying myself first." :wink: Investments were goal oriented... to buy things over and above what my hard working parents would spring for.

I am trying to lower my taxable space a little bit by converting to Roths. I have always maximized tax deferred investments. When the law changed in 2010 I decided to convert. I continue to maximize deferred space and Roths, and I will do so until I retire completely.
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Garco
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Re: Do you invest in a taxable account?

Post by Garco » Mon Jan 06, 2014 7:55 am

Maxing out 401k's, 457's is top priority. Received taxable funds in an inheritance, and manage those for tax efficiency,

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midareff
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Re: Do you invest in a taxable account?

Post by midareff » Mon Jan 06, 2014 7:58 am

abuss368 wrote:I am curious of Bogleheads who have investments in a taxable account.

Can you provide some information in terms of how the taxable account fits into your overall investment strategy and allocations?

Do you maximize tax advantage accounts such as IRAs and 401(k)s before investing in taxable?

Please provide any other additional information that you believe would benefit this thread.

Note: Simple poll with a "yes" or "no" option and open to the different investment strategies.

Thanks!

abuss ... After you have maxed your deferred compensation (457 which is later rolled to IRA upon retirement) and done you max Roth additional investment money the money has to go somewhere. You simply mix and match 457 fund availability and taxable fund availability and do the best you can until you retire and roll it all to VG and set it up the way you really want (ie: traditional Boglehead set for maximum tax efficiency). Taxable becomes extremely important as you start to get near retirement .... you don't want to start a draw from your IRA until you have too.

sscritic
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Re: Do you invest in a taxable account?

Post by sscritic » Mon Jan 06, 2014 8:22 am

SGM wrote:I started investing before there were IRAs. So I have always had taxable investments.
This. Also, my daughter was two when I opened a UGMA and bought some stocks and funds for her. Most two year olds don't work, so a taxable account was the only choice. What did you do with your allowance when you were five or six, put it in a Roth IRA?

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Re: Do you invest in a taxable account?

Post by KlangFool » Mon Jan 06, 2014 9:25 am

Yes, maxed out 401K, Roth IRAs, and HSA.. So, the rest of the money is in taxable A/C.

KlangFool

Grt2bOutdoors
Posts: 19502
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Do you invest in a taxable account?

Post by Grt2bOutdoors » Mon Jan 06, 2014 9:31 am

Yes - currently hold Total Stock Market and Total International along with some limited term and intermediate term municipal funds. Why? I've been fortunate to be able to max out 401k and IRA but don't feel it will be enough to sustain a normal retirement in our current geographical location - the tax burden is high. The other thing is employers have this tendency to cut older workers - while I'm not there yet, I want to maximize my options - saving and investing can be one way to do it.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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doug91
Posts: 276
Joined: Tue Feb 12, 2008 5:47 pm

Re: Do you invest in a taxable account?

Post by doug91 » Mon Jan 06, 2014 9:38 am

1. 401k up to the company match
2. Set aside funds for backdoor (or front door) Roth depending on 2014 income
3. Max out HSA
3. Max out 401k to pre-tax+after-tax limits
4. 529 to budgetary plan
5. I-bonds
6. Taxable Investing

I don't always make it to #6. :)

DM

staythecourse
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Joined: Mon Jan 03, 2011 9:40 am

Re: Do you invest in a taxable account?

Post by staythecourse » Mon Jan 06, 2014 9:44 am

The majority of my portfolio is in taxable. I max out my 401kx2, backdoor roth IRA x2, family HSA, 529 (28k limit for couples/ yr.) then the rest goes into taxable. It is pretty significant. I try to invest as tax efficient as possible. I use the taxable and our tax deferred to be as tax efficient as possible.

I have added paying down mortgage as part of a tax efficient investing after doing some back of the envelope changes for us after the re-enactments of the Pease laws. That means shifting what would go into bonds to prepaying mortgage. This opens up some tax deferred space for more tax inefficient funds (REITS, US SCV, and foreign mid/small cap value). Looking back at my last taxes they seem to be the worst offenders.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle

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SpringMan
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Location: Michigan

Re: Do you invest in a taxable account?

Post by SpringMan » Mon Jan 06, 2014 9:51 am

Yes, we have taxable accounts holding VSS, VLACX, VFWAX, and FSIVX. We don't contribute to them, all distributions are sent to MM and transferred to our checking account. We don't contribute to our tIRAs or Roths other than our distributions are reinvested. We are longer in accumulation phase being totally retired.
Best Wishes, SpringMan

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