Need help to plan portfolio

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Saelina
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Joined: Fri Feb 09, 2018 6:34 am

Need help to plan portfolio

Post by Saelina » Sat Feb 10, 2018 4:21 pm

Hi, I'm new to the site. 46 yrs old, no debt, car is leased, had lost almost everything in the 2008 crash. I made the mistake of dumping everything into random stocks, and when the crash hit, my income took a huge hit and had to cash out and sell in the low to pay my bills. I'm just getting to the point now where I have the extra funds again try to rebuild everything again. I'm almost starting from scratch but hopefully without making the same mistakes :D

I have my emergency funds created.

I have a Traditional IRA and a Roth Ira. I'll be moving them from Merrill Edge to Vanguard.

Do you have any employees in your business? No

About how much is in your traditional IRA, and about how much is in your Roth IRA? 15k t-ira 25k roth

About how much (in dollars) do you feel you might be contributing to investing annually (total, all accounts)? My goal is 20k, again though being commission based, it depends on the year could be more or less.

What is your tax bracket, both federal and state? Not sure, will try to find out

What is your tax filing status? single



Which funds should be set up in the roth vs the ira?

On years that I have extra, I can put into my vanguard brokerage, what fund should I make there for retirement savings?
Last edited by Saelina on Sun Feb 11, 2018 11:39 am, edited 1 time in total.

TwstdSista
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Re: Need help to plan portfolio

Post by TwstdSista » Sat Feb 10, 2018 4:26 pm

Why not stick to just three funds -- much simpler:

Admiral:
Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
Vanguard Total International Market Index Fund Admiral Shares (VTIAX) ER 0.11%
Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%
or Investor:
Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) ER 0.15%
Vanguard Total International Market Index Fund Investor Shares (VGTSX) ER 0.18%
Vanguard Total Bond Market Index Fund Investor Shares (VBMFX) ER 0.15%

Re: placement -- Bonds in pre-tax accounts, equities in Roth, total stock and/or total international in taxable (or tax exempt bond).

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

Saelina
Posts: 38
Joined: Fri Feb 09, 2018 6:34 am

Re: Need help to plan portfolio

Post by Saelina » Sat Feb 10, 2018 4:53 pm

TwstdSista wrote:
Sat Feb 10, 2018 4:26 pm
Why not stick to just three funds -- much simpler:

Admiral:
Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%
Vanguard Total International Market Index Fund Admiral Shares (VTIAX) ER 0.11%
Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%
or Investor:
Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) ER 0.15%
Vanguard Total International Market Index Fund Investor Shares (VGTSX) ER 0.18%
Vanguard Total Bond Market Index Fund Investor Shares (VBMFX) ER 0.15%

Re: placement -- Bonds in pre-tax accounts, equities in Roth, total stock and/or total international in taxable (or tax exempt bond).

ETA, see: https://www.bogleheads.org/wiki/Tax-eff ... _placement
Well I was hoping it would be a little more fun :) lol

so the split would be 50% TSM, 40% TIM, 10% Bond?

TwstdSista
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Re: Need help to plan portfolio

Post by TwstdSista » Sat Feb 10, 2018 5:05 pm

Nothing wrong with 50/40/10 (overall 90/10), but I'd be a little more conservative at your age. In fact, I am your age and I am 50/20/30 (overall 70/30).

A little more "fun" is also fine, take 5% (or a couple of 5%s) and tilt to Small Caps or Emerging Markets or REITs if that's what you want to do and you understand why you want to do it. I don't really understand the "whys" of tilting, so I stopped doing it this past year.

Saelina
Posts: 38
Joined: Fri Feb 09, 2018 6:34 am

Re: Need help to plan portfolio

Post by Saelina » Sat Feb 10, 2018 5:28 pm

TwstdSista wrote:
Sat Feb 10, 2018 5:05 pm
Nothing wrong with 50/40/10 (overall 90/10), but I'd be a little more conservative at your age. In fact, I am your age and I am 50/20/30 (overall 70/30).

A little more "fun" is also fine, take 5% (or a couple of 5%s) and tilt to Small Caps or Emerging Markets or REITs if that's what you want to do and you understand why you want to do it. I don't really understand the "whys" of tilting, so I stopped doing it this past year.
I think you are probably right, I should keep it as simple as possible for now. I don't know enough about any of it to make great decisions with it. The why probably just boils down to "i like buying new stuff". heh

Aggressiveness.. The last crash cleaned me out. It's only been the last couple of years I got back on my feet, out of debt and started saving again. This time, I have my emergency funds in place. The other investments I felt like I should be more aggressive with to try to make up for lost time. I thought there's not much to lose, since Im practically starting over again. Just a bit more stressed over limited time till retirement since im not 30 this time :(

TwstdSista
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Re: Need help to plan portfolio

Post by TwstdSista » Sat Feb 10, 2018 5:34 pm

I highly recommend that you write an IPS (Investment Policy Statement). See: https://www.bogleheads.org/wiki/Investm ... _statement

This was very helpful for me. Once it was written down, it was just a matter of implementing it and then walking away. Don't keep watching it, or the stock market. Set it and forget it, except when allowed per your IPS.

Keep in mind that investing shouldn't be fun. It should be nice and boring. Concentrate instead on saving as much as possible (while still living your life!) and keep investing, per your IPS.

mnvalue
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Re: Need help to plan portfolio

Post by mnvalue » Sat Feb 10, 2018 5:40 pm

The three-fund portfolio, as already suggested, is great.

However, since all of your retirement is in two IRAs, why not consider the Vanguard Target Retirement funds instead of doing the 3-fund portfolio yourself? The ER is the same as Investor Shares (ever so slightly higher than Admiral Shares), but the Target Retirement fund would automatically rebalance and automatically adjust the asset allocation over time too, so it would be truly set-it-and-forget-it. This may be especially valuable for you if you have a tendency to want to tinker and/or panic sell.

Vanguard Target Retirement 2040 Fund (VFORX) is appropriate to your age, and pretty close to your desired asset allocation.

If you end up having some extra money for taxable, just throw it into Vanguard Total Stock Market. If/when that becomes a non-trivial percentage of your portfolio (5%), then consider swapping the IRAs from the Target Retirement fund into doing a 3-fund portfolio across all your accounts (note: not 3 funds in every account). Changes inside the IRA do not have tax consequences.

Saelina
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Re: Need help to plan portfolio

Post by Saelina » Sat Feb 10, 2018 6:38 pm

mnvalue wrote:
Sat Feb 10, 2018 5:40 pm
The three-fund portfolio, as already suggested, is great.

However, since all of your retirement is in two IRAs, why not consider the Vanguard Target Retirement funds instead of doing the 3-fund portfolio yourself? The ER is the same as Investor Shares (ever so slightly higher than Admiral Shares), but the Target Retirement fund would automatically rebalance and automatically adjust the asset allocation over time too, so it would be truly set-it-and-forget-it. This may be especially valuable for you if you have a tendency to want to tinker and/or panic sell.

Vanguard Target Retirement 2040 Fund (VFORX) is appropriate to your age, and pretty close to your desired asset allocation.

If you end up having some extra money for taxable, just throw it into Vanguard Total Stock Market. If/when that becomes a non-trivial percentage of your portfolio (5%), then consider swapping the IRAs from the Target Retirement fund into doing a 3-fund portfolio across all your accounts (note: not 3 funds in every account). Changes inside the IRA do not have tax consequences.
That might be my best best until I learn more.

So my next question is when is a good time to move it? I had just bought a couple funds with the 11k I invested in jan for 2017 and 2018... all of which are in the red now. Do I wait for them to go back up a bit?

My IRA is in a brokerage account, they handle it. Bunch of holdings in the red there too now, same question.. do I wait for this correction to shake out?

mnvalue
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Re: Need help to plan portfolio

Post by mnvalue » Sat Feb 10, 2018 7:50 pm

There is no point in waiting. If you have a new plan you're happy with, just do it.

TwstdSista
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Re: Need help to plan portfolio

Post by TwstdSista » Sun Feb 11, 2018 7:53 am

^ Agreed. No point in waiting. I invest when the money is available. Read about Bob, the world's worst market timer: viewtopic.php?t=166730

Saelina
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Re: Need help to plan portfolio

Post by Saelina » Sun Feb 11, 2018 8:15 am

Im 1099'd, and I'm reading I might be able to do a sep ira or maybe a solo 401k? I thought I was limited to just the 5500 in the retirement accounts all these years. I'm commission based, so it's not something I can specifically plan for annually as it depends on how much above and beyond I make, but would they be better vehicles to put money in vs. just the normal brokerage account? And if so, which is better?

TwstdSista
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Re: Need help to plan portfolio

Post by TwstdSista » Sun Feb 11, 2018 8:29 am

Solo 401k is the better option. That being said, you can open a SEP IRA and make your contribution for 2017. Then you can open a solo 401k for 2018 contributions (and even roll your SEP into the solo 401k).

Vanguard does offer a solo 401k, but they do not allow you to purchase Admiral shares, and there are a few other restrictions. I use Fidelity for my i401k, but they have restrictions as well. Use the search bar in the upper right corner -- there are a few threads comparing the options.

ETA: I'm assuming you don't have employees, having employees changes things....

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ruralavalon
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Re: Need help to plan portfolio

Post by ruralavalon » Sun Feb 11, 2018 8:46 am

It's good to see that you are debt free.
Saelina wrote:
Sat Feb 10, 2018 4:21 pm
Hi, I'm new to the site. 46 yrs old, no debt, car is leased, had lost almost everything in the 2008 crash. I made the mistake of dumping everything into random stocks, and when the crash hit, my income took a huge hit and had to cash out and sell in the low to pay my bills. I'm just getting to the point now where I have the extra funds again try to rebuild everything again. I'm almost starting from scratch but hopefully without making the same mistakes :D

I have my emergency funds created.

I have a Traditional IRA and a Roth Ira, my funds are split 43% in T-IRA and 57% in Roth. I'll be moving them from Merrill Edge to Vanguard.
Im maxing out 5500 a year in the t- IRA currently.

Would this allocation be fine?

Vanguard Total Stock Market Index Fund- 40%
Vanguard Extended Market Index Fund - 10%
Vanguard FTSE All-World ex-US Index Fund Investor - 25%
Vanguard Emerging Markets - 15%
Vanguard Total Bond Index - 10%

Which funds should be set up in the roth vs the ira?

On years that I have extra, I can put into my vanguard brokerage, what fund should I make there for retirement savings?
Asset allocation.
First decide on asset allocation.

At age 47 I suggest about 30% bonds. That is expected to significantly reduce portfolio volatility (risk) with a relatively small decrease in portfolio performance. Please see the wiki article "Asset Allocation" and the wiki article "Boglehead's Investment Philosophy".

I suggest around 20-30% of stocks in international stocks. Historically 20% of stocks in international stocks would have captured about 85%
of the maximum diversification benefit, and 30% of stocks in international stocks would have captured about 99% of the maximum diversification benefit. For a pdf of a Vanguard paper on the subject you can Google "Considerations for Investing in Non-U.S Equities", see pp. 5-6.

That works out to around 30% bonds, 20% international stocks, and50% domestic stocks. Asset allocation is a very personal decision which you must make based on your own ability, willingness and need to take risk.


Fund selection.
In selecting funds to use strive for a combination of broad diversification (to decrease risk) and low expense ratios (to increase net return). To simply and easy achieve both I suggest a three-fund portfolio. Please see the wiki article "Three-fund Portfolio".

Here is what I suggest:
1) 50%, Vanguard Total Stock Market Index Fund;
2) 20%, Vanguard Total International Stock Index Fund; and
3) 30%, Vanguard Total Bond Market Index Fund.

Vanguard Total Stock Market Index Fund includes stocks of large-cap U.S. companies, plus stocks of mid-cap and small-cap U.S. companies including those in the extended market fund, so a separate extended market fund is not necessary.

Vanguard Total International Stock Index Fund is a little more diversified than Vanguard FTSE Global, because it includes stocks of small-cap companies which FTSE Global does not. Both include emerging markets, so a separate emerging markets fund is not necessary.
Last edited by ruralavalon on Sun Feb 11, 2018 9:20 am, edited 2 times in total.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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ruralavalon
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Location: Illinois

Re: Need help to plan portfolio

Post by ruralavalon » Sun Feb 11, 2018 8:53 am

Saelina wrote:
Sun Feb 11, 2018 8:15 am
Im 1099'd, and I'm reading I might be able to do a sep ira or maybe a solo 401k? I thought I was limited to just the 5500 in the retirement accounts all these years. I'm ommission based, so it's not something I can specifically plan for annually as it depends on how much above and beyond I make, but would they be better vehicles to put money in vs. just the normal brokerage account? And if so, which is better?
In general a tax-advantaged account will be usually better than a taxable account for most.

If self-employed you could consider a SIMPLE IRA, SEP IRA, or solo (individual) 401k. There are wiki articles on each. Vanguard offers each type of plan. On the Vanguard website look for "Small Business Plans" and use the tab "Compare plans". These plans do have higher contribution limits.

Do you have any employees in your business?

About how much is in your traditional IRA, and about how much is in your Roth IRA?

About how much (in dollars) do you feel you might be contributing to investing annually (total, all accounts)?

What is your tax bracket, both federal and state?

What is your tax filing status?

You can simply add this to your original post using the edit button, it helps a lot if all of your information is in one place.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Saelina
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Joined: Fri Feb 09, 2018 6:34 am

Re: Need help to plan portfolio

Post by Saelina » Sun Feb 11, 2018 11:40 am

ruralavalon wrote:
Sun Feb 11, 2018 8:53 am


Do you have any employees in your business?

About how much is in your traditional IRA, and about how much is in your Roth IRA?

About how much (in dollars) do you feel you might be contributing to investing annually (total, all accounts)?

What is your tax bracket, both federal and state?

What is your tax filing status?

You can simply add this to your original post using the edit button, it helps a lot if all of your information is in one place.
updated first post

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ruralavalon
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Location: Illinois

Re: Need help to plan portfolio

Post by ruralavalon » Sun Feb 11, 2018 2:24 pm

Saelina wrote:
Sat Feb 10, 2018 4:21 pm
Hi, I'm new to the site. 46 yrs old, no debt, car is leased, had lost almost everything in the 2008 crash. I made the mistake of dumping everything into random stocks, and when the crash hit, my income took a huge hit and had to cash out and sell in the low to pay my bills. I'm just getting to the point now where I have the extra funds again try to rebuild everything again. I'm almost starting from scratch but hopefully without making the same mistakes :D

I have my emergency funds created.

I have a Traditional IRA and a Roth Ira. I'll be moving them from Merrill Edge to Vanguard.

Do you have any employees in your business? No

About how much is in your traditional IRA, and about how much is in your Roth IRA? 15k t-ira 25k roth

About how much (in dollars) do you feel you might be contributing to investing annually (total, all accounts)? My goal is 20k, again though being commission based, it depends on the year could be more or less.

What is your tax bracket, both federal and state? Not sure, will try to find out

What is your tax filing status? single



Which funds should be set up in the roth vs the ira?

On years that I have extra, I can put into my vanguard brokerage, what fund should I make there for retirement savings?
Example portfolio.
Here is an example portfolio that you could consider. This is a three-fund portfolio. Total portfolio = $40k. Asset allocation is 30% bonds, 20% international stocks and 50% domestic stocks.

I assume the IRAs are moved to Vanguard, although Fidelity is also a possibility and offers similar total market index funds. You might want to delay rolling over the IRAs until you have decided the type of self employed plan you want, and whether you want that at Fidelity or Vanguard.

Traditional IRA @ Vanguard (38% of total; $15k)
08%, $03k, Vanguard Total International Stock Index Fund Investor Shares (VGTSX) ER 0.17%
30%, $12k. Vanguard Total Bond Market Index Fund Admiral Shares(VBTLX) ER 0.05%

Roth IRA @ Vanguard (62% of total; $25k)
50%, $20k, Vanguard Total Stock Market Index Fund Admiral Shares ()VTSAX) ER 0.04%
12%, $05k, Vanguard Total Stock Index Fund Investor Shares (VGTSX) ER 0.17%

Please see the wiki article "Tax-efficient Fund Placement".

. . . . .

For the future consider one of the plan choices available for the self employed. They are a better choice than a taxable account. They allow larger contributions than the above IRAs, which at age 46 are limited to $5.5k/yr per person total, the limit is a total for all of a person's IRAs.

As mentioned Fidelity also offers all three types of plans, with slightly different features.

Let's us know your tax bracket when you find out.

Also let us know what is better for you in terms of the self employed plan to use.

Then we might be able to suggest ideas for future contributions.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Saelina
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Re: Need help to plan portfolio

Post by Saelina » Mon Feb 12, 2018 5:54 pm

ruralavalon wrote:
Sun Feb 11, 2018 2:24 pm

What is your tax bracket, both federal and state? Not sure, will try to find out
I looked on the page you mentioned and for 2018 depending on write offs I will either be in 12 or 22%
ruralavalon wrote:
Sun Feb 11, 2018 2:24 pm


Please see the wiki article "Tax-efficient Fund Placement".
I read it and I don't understand why I'd pick the traditional ira vs roth ira for bonds vs stocks. Aren't they both tax advantaged?

TwstdSista
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Re: Need help to plan portfolio

Post by TwstdSista » Mon Feb 12, 2018 5:57 pm

Roth accounts have already been taxed, so no further taxes. Also no RMDs for a Roth IRA. As such, you want your highest potential earnings to be in a Roth.

Bonds are better in tax-deferred accounts (traditional) since these funds will be subject to taxes upon withdrawal, and will also be subject to RMDs.

Saelina
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Re: Need help to plan portfolio

Post by Saelina » Tue Feb 13, 2018 7:34 am

TwstdSista wrote:
Mon Feb 12, 2018 5:57 pm
Roth accounts have already been taxed, so no further taxes. Also no RMDs for a Roth IRA. As such, you want your highest potential earnings to be in a Roth.

Bonds are better in tax-deferred accounts (traditional) since these funds will be subject to taxes upon withdrawal, and will also be subject to RMDs.
Thank you.

Saelina
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Re: Need help to plan portfolio

Post by Saelina » Tue Feb 13, 2018 8:07 am

I initiated the sale of all my funds in Merrill Edge. They are all listed as "pending".. not sure why though since it all should have been sold yesterday. The guy on the phone said they will be available on Thursday. Guess they need a couple days to play with it before they give it back to you?

Anyway, here's what I think I will do for this year, let me know if this is a good game plan.. I need about 50k a year for all expenses and spending money. Everything over that can be applied to savings unless I decide on a vacation or something.

Cash/checking/Savings - 3-4 months at regular bank - already in place
Tier 1 Liquid Savings - High Yield Sallie Mae Money Market (1.5%)- Goal 1 year expenses ($50k) - $12k so far, adding 500 a month
Tier 2 Savings - Vanguard Wellesley Income Fund Investor Shares (VWINX) ER 0.22% - Goal 125% of expenses to allow for market drop if liquidation needed $65k - $11k so far adding 500 a month
-I know most people don't need this but I'm in real estate and the last crash I struggled 3 -4 years before back to normal income. So I want to plan for extended time in case that ever happens again, moderate gains/risk.

T- IRa 15k'ish moving
10k -Vanguard Total International Market Index Fund Admiral Shares (VTIAX) ER 0.11%
5k + - Vanguard Total Bond Market Index Fund Investor Shares (VBMFX) ER 0.15%
I know this is lower than recommended for my age, but I do have the 60% bonds sitting in Weselley. I will add more when I do my 2019 contribution.

Roth Ira - 25kish moving
25k - Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) ER 0.04%

Total 51k invested - Estimated Allocation
60% Us stocks (im including the 40% in wellesley as US)
20% International stocks
20% Bonds - (index + Weselley)

I've already invested in my t-ira for 2018. So it is a wait and see how income pans out as to whats available to go above and beyond. I'm guessing I should just max out my tier 1 and tier 2 savings before thinking about putting extra in an sep ira or solo 401k? Or do I let that gradually build over time?

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ruralavalon
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Re: Need help to plan portfolio

Post by ruralavalon » Tue Feb 13, 2018 8:54 am

That looks fairly reasonable in my opinion.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

TwstdSista
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Re: Need help to plan portfolio

Post by TwstdSista » Tue Feb 13, 2018 1:48 pm

I agree -- a reasonable plan. I'm in real estate as well, and I also keep a large than needed emergency fund.

Re: solo 401k vs. Tier 1 and Tier 2 savings. Keep in mind that pre-tax contributions to a solo 401k saves you on your tax bill. That savings can help boost other accounts. You have $500/month allotted to each tier already, so that's another $8000 available (depending on commissions). In the 12% tax bracket, $8000 to a pre-tax solo 401k saves $960 which could be placed in savings. In the 22% tax bracket it becomes a savings of $1760.

So it comes down to what you are comfortable with. What helps you sleep at night.

BTW: Not sure about the tax efficiency of the Wellesley fund?? Personally I'd use Vanguard Tax Managed Balanced Fund Admiral Shares (VTMFX) ER 0.09%.

Saelina
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Re: Need help to plan portfolio

Post by Saelina » Tue Feb 13, 2018 2:53 pm

TwstdSista wrote:
Tue Feb 13, 2018 1:48 pm
Re: solo 401k vs. Tier 1 and Tier 2 savings. Keep in mind that pre-tax contributions to a solo 401k saves you on your tax bill. That savings can help boost other accounts. You have $500/month allotted to each tier already, so that's another $8000 available (depending on commissions). In the 12% tax bracket, $8000 to a pre-tax solo 401k saves $960 which could be placed in savings. In the 22% tax bracket it becomes a savings of $1760.
$5500 of which Im putting in my t-ira. I already did 2018's contribution.
TwstdSista wrote:
Tue Feb 13, 2018 1:48 pm
BTW: Not sure about the tax efficiency of the Wellesley fund?? Personally I'd use Vanguard Tax Managed Balanced Fund Admiral Shares (VTMFX) ER 0.09%.
I'm more concerned about capital preservation than tax efficiency with the teir 2. I want the bulk of it there when I need it. I looked at the loss in 2008 for both and vtmfx is quite a bit higher. In 2008 - 09, I had to liquidate at the lowest and all my cash was in stocks and I suffered huge losses. So that's what I'm trying to protect against as much as I can from repeating.

mnvalue
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Re: Need help to plan portfolio

Post by mnvalue » Wed Feb 14, 2018 3:08 am

Saelina wrote:
Tue Feb 13, 2018 8:07 am
I initiated the sale of all my funds in Merrill Edge. They are all listed as "pending".. not sure why though since it all should have been sold yesterday. The guy on the phone said they will be available on Thursday. Guess they need a couple days to play with it before they give it back to you?
Stocks and mutual funds settle as T+2 (formerly T+3): https://www.investopedia.com/ask/answer ... d-t3-mean/

If you entered the order after market close, the trade happens the next day, so that's another day of delay.

Saelina
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Re: Need help to plan portfolio

Post by Saelina » Wed Feb 14, 2018 9:24 am

mnvalue wrote:
Wed Feb 14, 2018 3:08 am
Saelina wrote:
Tue Feb 13, 2018 8:07 am
I initiated the sale of all my funds in Merrill Edge. They are all listed as "pending".. not sure why though since it all should have been sold yesterday. The guy on the phone said they will be available on Thursday. Guess they need a couple days to play with it before they give it back to you?
Stocks and mutual funds settle as T+2 (formerly T+3): https://www.investopedia.com/ask/answer ... d-t3-mean/

If you entered the order after market close, the trade happens the next day, so that's another day of delay.
I see. So I put the trade request in on Monday at 1:30. I read somewhere the cut off for it was 2pm. Are my mutual funds sold at the close of the day prices or two day later prices?

Saelina
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Re: Need help to plan portfolio

Post by Saelina » Fri Feb 16, 2018 7:16 pm

What is the benefit of doing a solo 401k vs a Simple IRA?


I read in another thread someone was doing their 401k contributions and rolling it into their IRA at the end of the year so they can purchase all admiral shares instead of just the investor. Is that a viable strategy for keeping the costs down and would that affect my traditional ira in anyway or is a "rollover ira" a completely separate account?

TwstdSista
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Re: Need help to plan portfolio

Post by TwstdSista » Sat Feb 17, 2018 5:37 am

A Solo 401k has higher contribution limits than a SIMPLE does. I prefer it because it gives me flexibility if I have a good year.

If your income is too high for Roth contributions, then the existence of traditional-type IRAs (such as a SIMPLE) makes a backdoor Roth more complicated. I believe that a SIMPLE IRA also has an annual charge, but only $25.

A Rollover IRA is a Traditional IRA, but I don't understand at all why someone would roll a solo 401k over every year -- the investor class shares are not that expensive. (Although my solo 401k is at Fidelity where we are allowed to purchase the Premium class shares)

Saelina
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Re: Need help to plan portfolio

Post by Saelina » Thu Mar 01, 2018 7:25 am

My money was finally transferred. I got the 3 funds in my roth and ira account. I was able to set up a SEP IRA for last year. Is there an easy way to figure out what your max contribution limit is? My accountant said they'd give me the figures but not until the end of the month.

TwstdSista
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Re: Need help to plan portfolio

Post by TwstdSista » Thu Mar 01, 2018 10:48 am

You probably need the numbers from your accountant. I believe a sole proprietor can contribute up to 20% of net earnings from schedule C minus 1/2 of self-employment tax. You do need your tax forms to figure this out.

Although if you know your net earnings you can estimate (on the low side, just in case) and make a partial SEP contribution early. Then you can contribute the rest with the final numbers.

Saelina
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Re: Need help to plan portfolio

Post by Saelina » Thu Mar 01, 2018 2:30 pm

Yeah, I feel like I'm chasing the market down though. Every time I buy something the market drops another 500 pts :(

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ruralavalon
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Re: Need help to plan portfolio

Post by ruralavalon » Thu Mar 01, 2018 3:49 pm

Saelina wrote:
Thu Mar 01, 2018 2:30 pm
Yeah, I feel like I'm chasing the market down though. Every time I buy something the market drops another 500 pts :(
Every time you buy something you have more fund shares than you had before :) .
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Saelina
Posts: 38
Joined: Fri Feb 09, 2018 6:34 am

Re: Need help to plan portfolio

Post by Saelina » Thu Mar 01, 2018 4:19 pm

ruralavalon wrote:
Thu Mar 01, 2018 3:49 pm
Saelina wrote:
Thu Mar 01, 2018 2:30 pm
Yeah, I feel like I'm chasing the market down though. Every time I buy something the market drops another 500 pts :(
Every time you buy something you have more fund shares than you had before :) .
Worth less though! lol

I don't really understand what's going on with the markets. Why would a tariff on steel cause a sell off affecting facebook stock for example?


What should I buy when I get to the SEP part? I have the TSM, TISM, and TBI funds set up in the roth and traditional

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