Low income earner seeking advice- need to move my money around but where and in what?

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ralphboy
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Joined: Thu Apr 23, 2020 7:09 pm

Re: Low income earner seeking advice- need to move my money around but where and in what?

Post by ralphboy »

Thanks for the feedback. since I'm on the fence; FFNOX does seem to be the best option for me (So I'll choose it in both accounts). In November of this year, I'll have held my latest purchase of Publix stock for 1 year (What I bought myself, not through my 401k). I think I'm going to sell it all. Also come November, I'm hoping the Publix stock will go up another $1-2 and then I'll do a fund transfer of my Publix stock in the 401k ("Participants can now transfer balances out of the Publix Stock Fund into other investment options via a Fund Transfer"). The pandemic has been good for my business.

Publix Stock Prices
Price Effective Date
$63.10 08/01/2021
$61.30 05/01/2021
$60.20 03/01/2021
$57.95 11/01/2020
$54.35 08/01/2020
$50.10 05/01/2020
$48.90 03/01/2020

My 401k looks like this at the moment:
Baird Aggregate Bond Fund - 8.47%, State Street S&P 500 Index Fund - 25.05%, American EuroPacific Growth R6 - 8.33%, Publix Stock - 57.81%,
Cash Component of Publix Stock - 0.34%

:confused Edit: Now I'm unsure about FFNOX viewtopic.php?t=357138 :confused
zie
Posts: 263
Joined: Sun Mar 22, 2020 4:35 pm

Re: Low income earner seeking advice- need to move my money around but where and in what?

Post by zie »

It's doing what it should, it's becoming more in line with modern thinking about international(it now holds more).

You might have SOME cap gains while it makes it's shift in a taxable account, but it's not like you will have bajillions of dollars in this, so not a big deal.
HomeStretch wrote: Mon Sep 13, 2021 5:05 pm Don’t let trying to come up with a “perfect plan” get in the way of promptly executing a good plan.
I support what HomeStretch said. Nothing is perfect, getting close enough will get you where you want to go 99.99% of the time.

None of your plans are obviously wrong and are within the likelihood of success no matter what you do, so just buy FFNOX and move on with life. Focusing more on your income generation will do more for your long term success than worrying about these minor details.
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ralphboy
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Re: Low income earner seeking advice- need to move my money around but where and in what?

Post by ralphboy »

An update on the transfer progress. The NUVEEN HIGH YIELD MUNICIPAL CLASS I investment that I own is non-transferrable. I e-mailed RJ and told my advisor to sell it for me.

I guess I can just make my own FFNOX by keeping it how it is now, before it has more investments within it. So in my Roth IRA I could do:

Fidelity® 500 Index Fund 48%
Fidelity® Extended Market Index Fund 12%
Fidelity® International Index Fund 25%
Fidelity® U.S. Bond Index Fund 15%

I'll have to figure out how to rebalance each year. I'm hoping I can just enter the desired %s I want each investments to be rebalanced to.

For the brokerage account I might do:
80% FSKAX
20% FTIHX
zie
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Joined: Sun Mar 22, 2020 4:35 pm

Re: Low income earner seeking advice- need to move my money around but where and in what?

Post by zie »

This:
ralphboy wrote: Tue Sep 14, 2021 8:55 pm
80% FSKAX
20% FTIHX
Is not the equivalent to:
okwriter wrote: Wed Sep 01, 2021 2:36 pm
New strategy:
Stocks: 60% US, 40% international
Bonds: 10.85 yr duration; 20% intl

Stock/bond ratio stays the same at 85/15.
So in ETF terms FFNOX becomes:

85% VT
15% BND

Fidelity doesn't have an equivalent fund to VT, which is why they have so many equity funds in their mix. The bond allocation above(BND) is not identical, but it complicates it to get it more in line with FFNOX(would require 2 bond funds, BND and BNDX) and I'm lazy.

I'm of the firm opinion most of that thread is just upset that it's changing, not what it's changing to.
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ralphboy
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Re: Low income earner seeking advice- need to move my money around but where and in what?

Post by ralphboy »

I need help understanding my fidelity account. I noticed a -$60.48 in my portfolio (Cash Debit from Unsettled Activity). I called fidelity and asked if they would reimburse my RJ closing fee and they asked me how much it was. I mentioned that I saw the -$60.48 but the representative wanted me to contact RJ and ask them what the fee was. My advisor sold NHMRX but I don't see the sale of it in cash. In my activity and orders it shows:


DateSort Icons Descending
Description
Amount
Cash Balance
09/15/2021 TRANSFER OF ASSETS ACAT RECEIVE (Cash) $64.52 Processing
09/15/2021 TRANSFER OF ASSETS ACAT RECEIVE (Cash) -$125.00 Processing
09/15/2021 TRANSFER OF ASSETS ACAT RECEIVE FIRST TR EXCHANGE TRADED FD VI DORSEY W (FV) (Cash) -- Processing
09/15/2021 TRANSFER OF ASSETS ACAT RECEIVE GLOBAL X FDS GLOBAL X SOCIAL MEDIA ETF (SOCL) (Cash) -- Processing
09/15/2021 TRANSFER OF ASSETS ACAT RECEIVE INVESCO EXCHANGE TRADED FD TR BUYBACK A (PKW) (Cash) -- Processing
09/15/2021 TRANSFER OF ASSETS ACAT RECEIVE INVESCO EXCHANGE TRADED FD TR NASDAQ IN (PNQI) (Cash) -- Processing

My portfolio only shows the value of the remaining 4 assets (pnqi, socl, pkw, fv) minus $60.48.
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ralphboy
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Re: Low income earner seeking advice- need to move my money around but where and in what?

Post by ralphboy »

RJ told me I was charged a $125 transfer fee and I didn't have a closing fee. I spoke to Fidelity and they said they would reimburse that amount. It'll take a few days to show up. Once that goes through, I'll look into selling some of my holdings. I used the capital gains tax calculator provided in the thread and it looks like I can sell some holdings now and the rest next year to avoid paying taxes on them. The investment that I have made the most money on is PNQI, so I would like to lock in those earnings by selling it first. I would like it to go back up to $255 before making my move. As far as what to invest in with the money; I'm on the fence between having:

Option 1- Brokerage account and Roth IRA: 60% FSKAX, 20% FTIHX, and 20% FXNAX

I'm unsure if I should instead follow the recommendation on here of using Vanguard ETFs so:

Option 2- Brokerage account and Roth IRA: 60% VTI, 20% VXUS, and 20% BND

However, I'm unsure if I should have a bond in the brokerage account
...investing in very tax-efficient stock index funds in your new taxable account
Option 3- Brokerage account FSKAX & FTIHX (Not sure what the %s should be) and Roth IRA: 60% FSKAX, 20% FTIHX, and 20% FXNAX

I am also considering a set it and forget it fund.

Option 4- Brokerage account and Roth IRA: 100% FFNOX

Retirement: Switch my IRA to 60% FZROX and 40% FXNAX and set up an automated withdrawal going to my bank account.

I'm stressed and my head hurts :!:
zie
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Joined: Sun Mar 22, 2020 4:35 pm

Re: Low income earner seeking advice- need to move my money around but where and in what?

Post by zie »

ralphboy wrote: Thu Sep 16, 2021 11:24 am
Option 1- Brokerage account and Roth IRA: 60% FSKAX, 20% FTIHX, and 20% FXNAX

I'm unsure if I should instead follow the recommendation on here of using Vanguard ETFs so:

Option 2- Brokerage account and Roth IRA: 60% VTI, 20% VXUS, and 20% BND

However, I'm unsure if I should have a bond in the brokerage account
...investing in very tax-efficient stock index funds in your new taxable account
Option 3- Brokerage account FSKAX & FTIHX (Not sure what the %s should be) and Roth IRA: 60% FSKAX, 20% FTIHX, and 20% FXNAX

I am also considering a set it and forget it fund.

Option 4- Brokerage account and Roth IRA: 100% FFNOX

Retirement: Switch my IRA to 60% FZROX and 40% FXNAX and set up an automated withdrawal going to my bank account.

I'm stressed and my head hurts :!:
Don't stress, this decision is minor and mostly unimportant, despite what some people might say. All the important decisions you made already and are great, so relax.

Between Options 1 and 2, the Vanguard ETF's are likely more tax efficient, so pick option 2, between them.

Option 3 should go away, just hold the same between ROTH and Taxable, don't overthink this.

So that leaves the options between 2 and 4:

It doesn't matter over the few years you will be doing this, pick one and move along. I obviously prefer the lazy solution(4) FFNOX. but option 2 is totally fine as well.

As for bond in brokerage account, for the $ amounts we are talking about, and the yields being very low, the taxes on the coupon payments will probably not matter at all. This mattered a bit more the last 30 years(when interest rates were awesome), but even then it wasn't like the world ended. So don't worry about it. If you had 100k dollars in a bond fund and it was paying 1% over the year, you would owe taxes on $1,000, for someone in the 22% tax bracket that's $220 more on their IRS tax form, under $20/month. So not a big deal until you are talking about multiple millions, unless you are very bored, and think saving this might be fun.

So pick between option 2 and option 4, the differences are so minor as to be inconsequential. If you want to be lazy, pick FFNOX, if you want to do a bit of work, so you can learn more, then pick option 2.

Just note, if you pick option 2, there will be times when one or the other will do better and the other is falling and it will hurt to watch. That's the beauty of lazy, there is only 1 thing in there, and it will do whatever it does, and you won't see anything in your portfolio to compare it to, so it's fine. Sometimes it will go down, sometimes it will go up, but it will generally go up more(over long time frames), which is what we want!
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ruralavalon
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Re: Low income earner seeking advice- need to move my money around but where and in what?

Post by ruralavalon »

All of the very important decisions are decisions you have already made. You made good decisions.

Don't worry too much about the rest.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started
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ralphboy
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Joined: Thu Apr 23, 2020 7:09 pm

Re: Low income earner seeking advice- need to move my money around but where and in what?

Post by ralphboy »

I don't understand why my reimbursed transfer fee isn't showing up as cash in my portfolio.

09/16/2021 JOURNALED CLOSEOUT/TOA FEE CR (Cash) $125.00

09/15/2021 TRANSFER OF ASSETS ACAT RECEIVE (Cash) -$125.00

Edit: I figured it out after speaking to fidelity. I apparently had a $60 debit after the $125 fee. Once I was reimbursed the $125 it gave me positive balance. The mutual fund that could not be transferred over and that my advisor said he sold, has not reached my fidelity account yet. I was told that it would after the settlement. I put a limit order on PNQI for $259. If it hasn't hit that price by December, I'll lower it to $255.
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