Switching to 3-funds

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
Roly
Posts: 19
Joined: Fri Jun 26, 2020 9:32 am

Switching to 3-funds

Post by Roly »

My goal is to move to 3-funds that'd require minimal rebalancing.

All accounts retirement/checking/credit card/savings/taxable investments are at FideIity Investments, except for one HSA. All accounts are in Fidelity Freedom® Index 2035 Fund Investor Class (FIHFX) except 'Spouse 1: 401k' which is managed account.

Emergency funds: No. Will have at the end of the year.

Debt: Mortgage. Scheduled to be paid off end of the year.

Tax Filing Status: Married Filing Jointly.

Tax Rate: xx% Federal, yy% State
(How do I tell the tax bracket from tax returns, if that is important to post?)

State of Residence: NC

Spouse 1: 59
Spouse 2: 48

Desired Asset allocation: 80% stocks / 20% bonds
Desired International allocation: 40% of stocks

Current total portfolio: Very low seven figures.

Spouse 1: 401k
48%
Managed account. (Percent allocation - 80% stocks/20% bonds). Can change the percentage allocation only.
Contributions - 40,000 per year

Spouse 1: Roth
1%
Contributions - 7000 per year

Spouse 1: RHRP (Retirement Health)
1.5%
Contributions - 3000 per year

Spouse 1: HSA
0.2%
Contributions - 4600 per year

Spouse 2: 401k
42%
Contributions - 25,000 per year

Spouse 2: Roth
0.8%
Contributions - 6000 per year

Spouse 2: HSA
1%
Contributions - 3600 per year (This has Vanguard funds available).

Spouse 2: Taxable Investments
4.5%
Contributions - 0

Joint: Taxable Investments
0.1%
Contributions - Current 1,000 per month. Starting next year 60,000 - 70,000 per year

Spouse 2: Extra Roth (not counted in above retirement funds). Saving this for college education.
6%

As I understand -
US Stock in taxable.
International Stock in tax-exempt accounts like Roth and HSA.
All 3 in 401K.
Sell high buy low to rebalance.
But not sure how it'd work when its time to withdraw in retirement.

Assuming the above, my questions -
1. How does it work when you have to withdraw money in retirement? Lets say I should withdraw first from taxable, then I sell only US Stock Index fund, right? Shouldn't I sell all kinds at any time(US, International and Bond funds)?
2. I think Fidelity® ZERO Total Market Index Fund (FZROX) and Fidelity® ZERO International Index Fund (FZILX) for stocks. What about one for Total Bond Fund? I see Fidelity® Total Bond Fund (FTBFX) but the expense ratio is very high at 0.45%
3. When I move from FIHFX(Fidelity Freedom® Index 2035 Fund Investor) to 3-fund, should I do all the accounts at once or over a period of time?
4. Over time, if taxable account gets bigger than 'Spouse 2: 401K', what will 3-fund portfolio and rebalancing look like then?

Special thank you to @sycamore and @Sunny for helping via private messages. When I joined this forum, I hardly understood anything. But thanks to the BHers and your articles, I understand better.

Thank you!
Roly
wetgear
Posts: 212
Joined: Thu Apr 06, 2017 10:14 am

Re: Switching to 3-funds

Post by wetgear »

Hello Roly,

1) In this situation yes you sell what you have in taxable. You may only have US stock index fund in there and that's ok because after the sale you will re-balance in your other accounts. For example say your AA is 60/40 and you sell 1% of your portfolio from US Stock Index in your taxable account now you have an AA of 59/41. In another of your accounts you sell 1% of a total bond market index fund and buy 1% of a US stock index fund and now you are back at your original 60/40 AA. Your rebalances should happen in tax advantaged accounts (ideally 401k) so you don't create tax implications during the rebalance portion.

2) I don't think fidelity has a Zero bond fund but FXNAX has a ER of 0.025% which is still excellent. It's the recommended 3 fund portfolio bond fund for Fidelity, I personally use it too.

3) No reason not to do all the tax advantaged accounts at the same time. Tread carefully making this change in the taxable accounts though as you may create a tax bill that you could postpone until you are in a lower tax bracket. You haven't provided enough information to let us help you here but if I was in your shoes I might not bother making the change but make all future contributions to your taxable accounts into the 3 fund portfolio and when it comes time to sell, sell the FIHFX 2035 fund first to reduce porfolio complexity. @4.6% of your current portfolio this number is big enough that there could be a big tax bill by making the change but also small enough that it won't really move the needle by keeping it in a otherwise well rounded and diversified portfolio. It's a fine fund on it's own too so no need to run from it and pay taxes in the process.

4) Over time as the taxable account outgrows the 401k you sell stock in the 401k and buy more bonds to account for the increase in stock in your stock holdings elsewhere in the portfolio (specifically stock index contributions in the taxable account). This can also happen if the stock holdings naturally appreciate in your other accounts too. On the other hand if stocks are doing poorly you may need to do the opposite and sell some bonds in your 401k to bring your stock allocation back in line to your desired AA.

One other note: At 40% international stock you may end up having to hold some of this in your taxable account and that may end up being optimal because you will likely come close to filling up the 401k entirely with bonds which is the most tax efficient place to hold them. You could use your future contributions in taxable to nudge your US/International ratio back to where it's supposed to be.

Good luck :beer
Topic Author
Roly
Posts: 19
Joined: Fri Jun 26, 2020 9:32 am

Re: Switching to 3-funds

Post by Roly »

I didn't get notified but I will next time :)

Thank you so much, for taking the time to write a detailed message.

This is what I am getting at -

Taxable -
Buy US Stock with future contributions. Leave FIHFX 2035 or figure out tax implications before selling.

Tax advantaged -
HSA and Roth - Sell all at once and buy International. Future contributions will go to International.
401K - Sell all at once and buy 3-fund. Future contributions will go to 3-fund in the same ratio as at the start.

When taxable gets bigger, it may have some International Stock and 401K may end up with more bonds, which is good.

All accounts together to be in desired AA after balancing. Then rebalance once a year. Rebalancing is ideal in 401K, or with future contributions in taxable.

Did I get it right?

Also, how do I figure the tax implications of selling FIHFX in taxable? What info do I need to post?
ivgrivchuck
Posts: 709
Joined: Sun Sep 27, 2020 6:20 pm

Re: Switching to 3-funds

Post by ivgrivchuck »

80/20 AA at your ages (59/48) is very aggressive.

It is still probably a mathematically sound choice, but you may need to be ready for a rollercoaster ride.

I always recommend a stress test: pretend that the stock market drops by 50%, do the math, and make sure that it doesn't put your retirement plans at risk.
37% VTI | 37% VXUS | 13% I-bonds | 13% EE-bonds
sycamore
Posts: 2241
Joined: Tue May 08, 2018 12:06 pm

Re: Switching to 3-funds

Post by sycamore »

Roly wrote: Wed Jun 02, 2021 2:25 pm Also, how do I figure the tax implications of selling FIHFX in taxable? What info do I need to post?
Step 1) Determine your cost basis
1a) Do you have a copy of your trade confirmations? If not, I suggest downloading them. Yes, Fidelity is responsible for tracking cost basis but if they mess up, how would you know? Review your trade confirmations, count up all the purchase amounts by "term" (Short term is you've held the purchase less than 1 year, long term is 1 year or more)
or 1b) Fidelity probably has a page that shows your transaction history (which also shows purchase amounts date) or maybe even a page that says what your cost basis is by term.

Step 2) Once you know your cost basis by term, you can compute your gain = current value - basis.

Step 3) Given your estimated tax rates (for 2021, not last year), you'll know if you owe 15% or 20% on long-term gain, and your marginal tax rate on short-term gains.

Your estimated tax rates depends on a lot of things. I would suggest using https://www.mortgagecalculator.org/calc ... ulator.php with your estimated income (W-2, 1099-DIV, cap gains, IRA conversions, etc.) so you can figure out your Adjusted Gross Income and deductions. That tells you your taxable income, which is used to determine various tax rates.

If you don't want to go to all that trouble, you could just look at your 2020 return to determine taxable income and -- assuming your cap gains from selling FIHFX are relatively low and no other major income changes --- your tax rates will probably be the same this year.
wetgear
Posts: 212
Joined: Thu Apr 06, 2017 10:14 am

Re: Switching to 3-funds

Post by wetgear »

Roly wrote: Wed Jun 02, 2021 2:25 pm I didn't get notified but I will next time :)

Thank you so much, for taking the time to write a detailed message.

This is what I am getting at -

Taxable -
Buy US Stock with future contributions. Leave FIHFX 2035 or figure out tax implications before selling.

Tax advantaged -
HSA and Roth - Sell all at once and buy International. Future contributions will go to International.
401K - Sell all at once and buy 3-fund. Future contributions will go to 3-fund in the same ratio as at the start.

When taxable gets bigger, it may have some International Stock and 401K may end up with more bonds, which is good.

All accounts together to be in desired AA after balancing. Then rebalance once a year. Rebalancing is ideal in 401K, or with future contributions in taxable.

Did I get it right?

Also, how do I figure the tax implications of selling FIHFX in taxable? What info do I need to post?
You got it right!

Tax implications are pretty easy to find on Fidelity's website. You are looking for "cost basis" vs the current value. That will be how much it has appreciated, multiply that by your short or long term capital gains rate (depends on if you've held them for >1 year) and that's how much it will cost in taxes.

Did you purchase all the shares at the same time? If so it's very straightforward.

I agree with the other posters that 80/20 is pretty aggressive. We are (40 & 44) and are ~70/30 and gliding down to 60/40 in the next 10 years.
Topic Author
Roly
Posts: 19
Joined: Fri Jun 26, 2020 9:32 am

Re: Switching to 3-funds

Post by Roly »

This is interesting. I pay taxes every year on the gains. I thought I will have to pay taxes on the gains incurred this year only. What am I missing?
User avatar
bertilak
Posts: 8453
Joined: Tue Aug 02, 2011 5:23 pm
Location: East of the Pecos, West of the Mississippi

Re: Switching to 3-funds

Post by bertilak »

Roly wrote: Wed Jun 02, 2021 2:25 pm Also, how do I figure the tax implications of selling FIHFX in taxable? What info do I need to post?
Fidelity should send you a 1099 form telling what your realized gains and losses were.

You might want to hire CPA to do your tazes for one year just to see what it looks like and as a model for doing it yourself. You can use a tax program as well but having done it once or twice manualy will help you understand what to enter into the program.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
sycamore
Posts: 2241
Joined: Tue May 08, 2018 12:06 pm

Re: Switching to 3-funds

Post by sycamore »

Roly wrote: Wed Jun 02, 2021 6:40 pm This is interesting. I pay taxes every year on the gains. I thought I will have to pay taxes on the gains incurred this year only. What am I missing?
There are two meanings of "capital gains". One is when you choose to sell your shares, i.e., realized gains. You'll get a 1099-B reporting these kinds of cap gains. If you never sell, you won't pay tax on the "gains" as they are only unrealized gains.

The other is when the fund itself distributes internal capital gains to the shareholders. This happens outside your control. For index stock funds these distributions are usually small like 1 or 0.5% per year, sometimes not at all. Ditto for index bond funds. And for your target date Fidelity fund, which holds a combination of stock and bond index funds, the distributions are a mix of distributions from the underlying funds. You'll get a 1099-DIV that reports the distributions.
ImUrHuckleberry
Posts: 607
Joined: Sat Apr 15, 2017 7:44 am

Re: Switching to 3-funds

Post by ImUrHuckleberry »

I think you want international stocks in taxable before domestic stocks. That way you can claim the foreign tax credit, which you will lose if the international stocks are in tax advantaged accounts.
ruud
Posts: 462
Joined: Sat Mar 03, 2007 1:28 pm
Location: san francisco bay area

Re: Switching to 3-funds

Post by ruud »

ImUrHuckleberry wrote: Wed Jun 02, 2021 9:45 pm I think you want international stocks in taxable before domestic stocks. That way you can claim the foreign tax credit, which you will lose if the international stocks are in tax advantaged accounts.
Last time I did this calculation, the foreign tax credit did not make up for the additional tax drag due to higher dividend yield and lower qualified dividends of international funds. But this is dependent on your tax bracket (state, federal and cap gains).
.
Topic Author
Roly
Posts: 19
Joined: Fri Jun 26, 2020 9:32 am

Re: Switching to 3-funds

Post by Roly »

Thank you all.

For my situation, it is better to buy US Stock in taxable first.

I still don’t understand realized vs unrealized gains. Can point to an article?

Do I pay for gains on adjusted cost basis? Or on original purchase price?

If I paid taxes on original cost basis, then I will be paying taxes twice. Is that right?

Let’s say I invested $1000 and I paid taxes on $100 gains and dividends each year for 5 years. Now it has become $2000. If I sell now, are my realized gains $500 or $1000?
Last edited by Roly on Thu Jun 03, 2021 7:11 am, edited 1 time in total.
User avatar
bertilak
Posts: 8453
Joined: Tue Aug 02, 2011 5:23 pm
Location: East of the Pecos, West of the Mississippi

Re: Switching to 3-funds

Post by bertilak »

Roly wrote: Thu Jun 03, 2021 7:02 am I still don’t understand realized vs unrealized gains. Can point to an article?
https://financial-dictionary.thefreedic ... lized+gain
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
Topic Author
Roly
Posts: 19
Joined: Fri Jun 26, 2020 9:32 am

Re: Switching to 3-funds

Post by Roly »

Thank you.

It doesn’t make sense to me.

Let’s fabricate another example -

Total Investment $1000 in 2010. I purchase 100 shares of a mutual fund in 2010, at share price $10. Dec 31 2010, share price was $12. Total value $1200. I have $200 in unrealized gains and dividends I pay taxes on. I now have $120 shares.

And the share price was adjusted back to $10 as of January 1st, 2011. Dec 30 2011, price of the share went back up to $12. If I keep the fund, I will pay taxes on $240 on gains and dividends. Total value $1440. If I instead sold, will I have realized gains of $440 or $240?

I realize that may be too simple 😉
RyeBourbon
Posts: 327
Joined: Tue Sep 01, 2020 12:20 pm
Location: NJ/Philly

Re: Switching to 3-funds

Post by RyeBourbon »

You don't pay taxes on unrealized gains. You pay taxes on distributions (dividends and cap gains), i.e. money distributed to you by the fund which could be left as cash, or be reinvested into more shares, but you pay tax either way. You also pay taxes on the gain when you sell (realized gain).
Topic Author
Roly
Posts: 19
Joined: Fri Jun 26, 2020 9:32 am

Re: Switching to 3-funds

Post by Roly »

I see. Thank you. So, in my example, I will pay taxes on $440, correct?

I did not know this and sold all funds in taxable to pay down mortgage haha
RyeBourbon
Posts: 327
Joined: Tue Sep 01, 2020 12:20 pm
Location: NJ/Philly

Re: Switching to 3-funds

Post by RyeBourbon »

Roly wrote: Thu Jun 03, 2021 8:54 am I see. Thank you. So, in my example, I will pay taxes on $440, correct?

I did not know this and sold all funds in taxable to pay down mortgage haha
I don't understand your example ("share price was adjusted"?).

It's very simple. Your capital gain is the difference between what you sold it for and what you paid (the basis).
Topic Author
Roly
Posts: 19
Joined: Fri Jun 26, 2020 9:32 am

Re: Switching to 3-funds

Post by Roly »

Thank you.

It was hard for me to believe that it is so simple a calculation. Because that translates to paying taxes twice on part of the money. Sometimes, mutual funds pay a lot in dividends and cap gains (FIHFX did two years ago).

But I get it :D

Thank you @ivgrivchuck and @wetgear for bringing this up. Lets talk about AA now. I will share my thoughts first. Then, lets see if I need to adjust.

My AA is based on simple math.
FIHFX - Fidelity Freedom® Index 2035 Fund - Investor Class. It has the same ratio.
I have more than 5 years.
I will not panic during a market downturn.
I will have enough to retire in 3-5 years, if the market performs significantly below average.

Worst case - both lose jobs in 3 years. And the market has just crashed.
-We will have enough from social security and pension to cover monthly expenses.
-We will have emergency expenses for car/house repairs for year #1.
-We won't have enough to pay for health insurance. Either we withdraw from HSA and Retirement Health Plan or the younger one finds another job.
-If we hit emergency again year #2, we will need to withdraw more.
-We have about $35K in health accounts. We are now maximizing contributions ($11,200 per annum) and not using any. Not totally sure how many years it will cover in medical premiums and out of pocket expenses.
-We plan to travel more in retirement, that will be put on hold for a while.
-Most likely, the younger one will keep working another 10 years.

What am I missing? What ratio may be better for me?

Thank you!
User avatar
bertilak
Posts: 8453
Joined: Tue Aug 02, 2011 5:23 pm
Location: East of the Pecos, West of the Mississippi

Re: Switching to 3-funds

Post by bertilak »

Roly wrote: Thu Jun 03, 2021 11:53 am It was hard for me to believe that it is so simple a calculation. Because that translates to paying taxes twice on part of the money
I see why you could be concerned if you think you are being taxed twice on the same thing.

I don't believe you are.

Basically (with investments in stocks and bonds) you only get taxed when something turns into cash. That is dividends and (realized) capital gains. When/where/how else are you being taxed. Please identify the two times you see as being taxed twice on the same thing.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
sycamore
Posts: 2241
Joined: Tue May 08, 2018 12:06 pm

Re: Switching to 3-funds

Post by sycamore »

bertilak wrote: Thu Jun 03, 2021 12:08 pm
Roly wrote: Thu Jun 03, 2021 11:53 am It was hard for me to believe that it is so simple a calculation. Because that translates to paying taxes twice on part of the money
I see why you could be concerned if you think you are being taxed twice on the same thing.

I don't believe you are.

Basically (with investments in stocks and bonds) you only get taxed when something turns into cash. That is dividends and (realized) capital gains. When/where/how else are you being taxed. Please identify the two times you see as being taxed twice on the same thing.
I don't believe Roly is being taxed twice either. My guess is Roly doesn't realize that reinvested dividends and cap gains distributions should be added to the basis and thus won't be taxed upon selling. A clue is the bolded part in the quote below:
Roly wrote: Thu Jun 03, 2021 11:53 am It was hard for me to believe that it is so simple a calculation. Because that translates to paying taxes twice on part of the money. Sometimes, mutual funds pay a lot in dividends and cap gains (FIHFX did two years ago).
Roly, if you paid $1000 for a fund and it paid out $50 in dividends + cap gins, you do have to pay tax on the $50. You pay the tax whether you spend the distribution or reinvest it. However, if you do reinvest it, you now have $1050 as the basis in your stock. When you sell stock, you don't pay tax on the basis part of the sale.
User avatar
bertilak
Posts: 8453
Joined: Tue Aug 02, 2011 5:23 pm
Location: East of the Pecos, West of the Mississippi

Re: Switching to 3-funds

Post by bertilak »

Removed a confusing remark.
Last edited by bertilak on Thu Jun 03, 2021 12:32 pm, edited 2 times in total.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
sycamore
Posts: 2241
Joined: Tue May 08, 2018 12:06 pm

Re: Switching to 3-funds

Post by sycamore »

Roly wrote: Thu Jun 03, 2021 11:53 am Thank you @ivgrivchuck and @wetgear for bringing this up. Lets talk about AA now. I will share my thoughts first. Then, lets see if I need to adjust.

My AA is based on simple math.
FIHFX - Fidelity Freedom® Index 2035 Fund - Investor Class. It has the same ratio.
I have more than 5 years.
I will not panic during a market downturn.
I will have enough to retire in 3-5 years, if the market performs significantly below average.

Worst case - both lose jobs in 3 years. And the market has just crashed.
-We will have enough from social security and pension to cover monthly expenses.
-We will have emergency expenses for car/house repairs for year #1.
-We won't have enough to pay for health insurance. Either we withdraw from HSA and Retirement Health Plan or the younger one finds another job.
-If we hit emergency again year #2, we will need to withdraw more.
-We have about $35K in health accounts. We are now maximizing contributions ($11,200 per annum) and not using any. Not totally sure how many years it will cover in medical premiums and out of pocket expenses.
-We plan to travel more in retirement, that will be put on hold for a while.
-Most likely, the younger one will keep working another 10 years.

What am I missing? What ratio may be better for me?

Thank you!
80/20 is reasonable given (1) you have enough in guaranteed pension + SS to cover expenses and (2) you won't panic and (3) the younger one is willing to go back to work. Also, given your ages (59/48) you have potentially several decades of investing ahead of you -- it's not like you're going to spend it all in the first 10 years so you'll want "enough" stock exposure for a good time to come. I think anywhere between 50/50 and 80/20 for you is a good place to be. Does your spouse have any feeling/opinion on how much in stocks is comfortable versus too much?

Whether you want to drawdown your HSA versus harvest gains from a taxable account is a different question. Not to say it's clear cut you should or should not, just that there may be some years where it's advantageous to sell stocks in taxable (and paying some tax on the gains) and thereby let the HSA keep growing tax-free. Other years it may be better to take tax-free withdrawals from the HSA. Just saying you'll want to "run the numbers" each year to see which account to withdraw from is best.
User avatar
bertilak
Posts: 8453
Joined: Tue Aug 02, 2011 5:23 pm
Location: East of the Pecos, West of the Mississippi

Re: Switching to 3-funds

Post by bertilak »

sycamore wrote: Thu Jun 03, 2021 12:16 pm
bertilak wrote: Thu Jun 03, 2021 12:08 pm
Roly wrote: Thu Jun 03, 2021 11:53 am It was hard for me to believe that it is so simple a calculation. Because that translates to paying taxes twice on part of the money
I see why you could be concerned if you think you are being taxed twice on the same thing.

I don't believe you are.

Basically (with investments in stocks and bonds) you only get taxed when something turns into cash. That is dividends and (realized) capital gains. When/where/how else are you being taxed. Please identify the two times you see as being taxed twice on the same thing.
I don't believe Roly is being taxed twice either. My guess is Roly doesn't realize that reinvested dividends and cap gains distributions should be added to the basis and thus won't be taxed upon selling. A clue is the bolded part in the quote below:
Roly wrote: Thu Jun 03, 2021 11:53 am It was hard for me to believe that it is so simple a calculation. Because that translates to paying taxes twice on part of the money. Sometimes, mutual funds pay a lot in dividends and cap gains (FIHFX did two years ago).
Roly, if you paid $1000 for a fund and it paid out $50 in dividends + cap gins, you do have to pay tax on the $50. You pay the tax whether you spend the distribution or reinvest it. However, if you do reinvest it, you now have $1050 as the basis in your stock. When you sell stock, you don't pay tax on the basis part of the sale.
Another possible point of confusion about reinvested dividends. If that reinvested dividend is eventually sold at a profit you DO pay tax on the profit (realized cap gains) that the dividend earned. That is NOT the same as paying taxes on the dividend itself -- which happened back when you got the dividend.

Relying on the broker's 1099 can help sort all that out.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
Topic Author
Roly
Posts: 19
Joined: Fri Jun 26, 2020 9:32 am

Re: Switching to 3-funds

Post by Roly »

That makes more sense. Thank you all. I need to read and understand basis points, cost basis etc

Thank you sycamore for all your help so far.

I like the point of selling HSA vs taxable based on the year. I didn’t think about that. need to learn more about that.

Spouse will do 100% stocks. I had to force 80/20 😂
Topic Author
Roly
Posts: 19
Joined: Fri Jun 26, 2020 9:32 am

Re: Switching to 3-funds

Post by Roly »

I want to learn about which account to withdraw from in retirement, for example, which account to use for college education, Medical expenses, other expenses, emergencies, etc.

How do you determine this in a given year? Does it matter which spouse's account is used?

I don't have any separate college fund like 529. But I do have multiple HSA/Retiree Health accounts. Roths, 401Ks and taxables.
Topic Author
Roly
Posts: 19
Joined: Fri Jun 26, 2020 9:32 am

Re: Switching to 3-funds

Post by Roly »

Thank you all (one ton) for helping me.

I switched to 3-fund, finally. It was not hard at all, took a while to be mentally prepared.

I am still looking for answers on how to decide which fund to withdraw from, in retirement.
When should you use (expenses include college at ages 70/59) -
1. HSA funds
2. Roth
3. 401k
4. Taxable
5. Which spouse funds should be used first?

Other questions -
1. When is it advantageous to sell losing trades, to take a loss on taxes? How do you decide which losing ones to sell first?
2. When is it advantageous to donate to avoid/reduce taxes?

I think these are complex questions. Maybe you can point me to some text?
Post Reply