Announcement

Collapse
No announcement yet.

Optimal investments for taxable account

Collapse
X
Collapse
First Prev Next Last
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Peds
    replied
    Brkb is optional in that list.

    Leave a comment:


  • xraygoggles
    replied
    VTI with maybe a sprinkling of BRK/B for all your domestic needs is not a bad portfolio at all.
    VXUS is all I use for all international.
    Bonds are optional.

    Leave a comment:


  • Nysoz
    replied
    since you're ok with 100% stock, it depends on how hands on you want to be.

    literally just put in money for the rest of your life and never worry about it is a target date retirement fund. sooner or later you'll want to rebalance into bonds. further out is more stock heavy. the target date fund will automatically do this for you

    for 1 fund, world stock is VT or VTWAX

    if you want to be a little more hands on to choose how much international exposure you have for slightly cheaper, US and international is VTI and VXUS or VTSAX and VTIAX

    I list the ETF tickers alongside the mutual funds because they're more tax efficient says the internet

    also another vote to not need a financial advisor to manage your money because if you want to stay basic and won't let emotion into your investments (can handle 20-50% drops in the market without pulling money out eg timing the market) the above is all you have to do. if you need anything else or want to talk to someone you can get a fee for service fiduciary which is way cheaper in the long run. but if you want to pay your friend's salary instead of contributing that money to your community directly, that's up to you

    Leave a comment:


  • Tim
    replied
    Originally posted by Sleepez View Post
    So how is VTWAX, compared to VTSAX.. opinions?
    Suggest you contrast rather than compare, geographic coverage is the distinguishing characteristic, 100% vs 55% market cap respectively.

    Of course the past is not necessarily representative of the future. Try understanding the difference between market caps.
    https://awealthofcommonsense.com/201...ake-any-sense/
    It's not easy to make sense of the world.
    Last edited by Tim; 12-18-2019, 06:20 AM.

    Leave a comment:


  • CordMcNally
    replied
    Originally posted by Sleepez View Post
    So how is VTWAX, compared to VTSAX.. opinions?
    VTWAX is a Total World fund while VTSAX is a US Total Market fund so they're not comparable.

    Leave a comment:


  • Sleepez
    replied
    So how is VTWAX, compared to VTSAX.. opinions?

    Leave a comment:


  • mbaCPA
    replied
    Remember that in a taxable account you get the benefit of the Foreign Tax Credit for foreign withholding taxes on dividends, while in a tax sheltered account this is completely lost.  As such there would be value in having more of your international stocks in taxable and more of your U.S. ones in tax-sheltered accounts.

    Leave a comment:


  • Dreamgiver
    replied
    Sorry, did not see what specific questions you have. If it is just the title, low ER, low turnover, passive index funds (‘total stock market’) Split domestic/international according to your plan. Can add munis if you wish but would not do bond funds due to tax drag.

    Leave a comment:


  • Lordosis
    replied


    I am happy to pay reasonable advisor fees to help support him and his family for the big picture of what he does in our community.
    Click to expand...


    You hire someone for their value they add not to give them a job.  If you want to be generous give to charity, tip a higher percentage, or Pay for the person behind you at the drive thru.

    Leave a comment:


  • Peds
    replied




    I am happy to pay reasonable advisor fees to help support him and his family for the big picture of what he does in our community. I know I could be ostracized on this website for not just making it a math problem, but money is really just a tool, not an end goal.
    Click to expand...


    well dont forget you dont get a pass on basic math.

    depending on the AUM fee, you will do exponentially greater charitable giving by not using your advisor.

     

    so whats the cost?

    Leave a comment:


  • sjudkins
    replied
    I appreciate all the feedback and opinions. I looked into VTWAX on Bogelheads--wow, what a strong reaction that one raises amongst the literate investor masses. Very interesting idea for a one fund portfolio, or add some bonds for a 2-fund arrangement. We are young and our risk tolerance is very high so I do not mind an aggressive portfolio with 90 or 100% stocks for now.

    In regards to the tax-deferred accounts, I will plan to manage it in time. There are other things that our advisor does that are very important to us including charitable giving advice, hosting Journeys of Generosity, and community involvement in other non-profits. I am happy to pay reasonable advisor fees to help support him and his family for the big picture of what he does in our community. I know I could be ostracized on this website for not just making it a math problem, but money is really just a tool, not an end goal.

    Leave a comment:


  • Lordosis
    replied
    Depends on your timeframe. Financial goals. And risk tolerance.

    Leave a comment:


  • Yowza
    replied




    I agree. Total stock and total international. When you add bonds do it in your tax deferred.
    Click to expand...


    But if you're already in retirement and just looking to get a better return than a HYSA, muni bonds is reasonable as part of your AA in a taxable account? or is there a better option (at Vanguard in this case)?

    Leave a comment:


  • Tim
    replied
    “You could probably spend a week of reading and be ready to take back your tax-deferred accounts now instead of in 5 years.”
    “Total us. Total intl.” Total Bonds.
    That’s it.” for tax-deferred .

    Just figure out a % for each and thank Peds and Cord for freeing you from advisor fees. Start with 50/30/20 and add or subtract if you wish to shrink a week to 5 minutes.

    Leave a comment:


  • ACN
    replied
    Ultimately though, as your taxable account increases, won't you be required to put bonds in there to keep it balanced?

    Leave a comment:

Working...
X