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I've been trying to research this on the Bogleheads site but it's a little confusing. I opened a Roth IRA with Vanguard and I put 5500 into the 2050 Target Retirement Fund. I still have another $10,000 or so I can safely invest (I don't need it for 10+ years and I don't want it just sitting in a savings account). Is my only choice at this point to open a brokerage account? If so, should I be avoiding the Life Strategy funds because they have Bonds in them and that triggers taxes? I'd prefer to just set it and forget it. I was planning on just putting all 10k in the VTSAX Total Stock Market fund but it sounds like a bad idea to go all in on stocks.
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Aug 11, 2017 06:40
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Thanks for the info. I'm in California at 25%. I'll be fine with 1 and 2 happening. I'm not rich but this is really just extra money that has sat in my bank for several years and I have no foreseeable expenses I can't handle. The boglehead site talks about how the "fund of funds" like the Target Retirement and the Life Strategy are not ideal for taxable accounts, and that's really all that's throwing me off.
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Aug 11, 2017 07:17
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Glad you told me about the CA tax free bonds. I'll go in on that. I'm not sure about the plethora of other ones you talked about. Seems easier to just split between the US and World funds.
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Aug 11, 2017 08:19
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paternity suitor posted:Never go 100% stocks. It's never been a good idea, it's just been profitable the last couple of years. Also worth pointing out that bonds are crazy expensive right now too, and have been for a long time. So I did the vanguard questionnaire thing and I think I'm comfortable at 70/30 stock/bond. Since my Roth is already maxed out and in a target retirement fund, should I just go ahead and add 30% bonds to my taxable account? I am looking long term here and probably not going to meddle with it for the foreseeable future beside readjusting the ratio every year. It's just that reading the bogleheads forums leads me to think it will kick my rear end with unwanted taxes.
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Aug 11, 2017 22:22
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I'm over 30 years from retirement. Do you think I should exchange the target retirement fund to just all bonds then? Part of the appeal for me was that it was hands-off and that Vanguard would take care of it.
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Aug 11, 2017 22:32
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Hoodwinker posted:Your target date retirement fund already has bonds allocated in it. You probably do not need to allocate many further. Yes but that's just in my Roth. I'm looking to open a standard brokerage account as well. Shouldn't I be trying to maintain that asset location across both accounts?
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Aug 11, 2017 22:39
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Ok I can definitely wait.
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Aug 11, 2017 22:46
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I'm inherently scared of new things
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Aug 11, 2017 23:00
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SweetSassyMolassy posted:Was looking at the Vanguard Prime Money Market fund VMMXX and the SEC yield is 1.12% at the moment with an ER of 0.16%. Is that the yield after expenses? I can't ever remember. I put my money in the Ally 11-month no penalty CD. You can withdraw at any time. https://www.ally.com/bank/no-penalty-cd/
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Sep 16, 2017 16:23
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SweetSassyMolassy posted:I would, but for just a few bucks a month, I don't want the hassle of another bank and the associated 1099-int to keep up with. Moving it to the MM account would keep all of the existing banking relationships the same with the potential bonus of those extra few bucks. You have the option to auto renew or to dump it to whatever account when it has matured. The rate isn't guaranteed to stay the same, but I don't see the big issue with checking up on it once a year. Their regular savings account is quite good at 1.2% as well.
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Sep 18, 2017 09:02
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Covok posted:My brother did a meeting with an Edward-Jones agent and wants to open a Roth IRA with them. I tried to convince him otherwise, but he doesn't trust my word. I know the company is not that trustworthy due to their high fees -- I mean, look at the thread title --, but I need some proof to stop my brother from making a mistake. Anyone have any articles I could send him? Or something like that? John Oliver did a segment about retirement accounts. He specifically talks about recommending companies like Vanguard, but the video is like 20 minutes long because retirement accounts are complicated.
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Sep 21, 2017 01:41
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We would all do the same if we could.
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Sep 21, 2017 15:52
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It should say something about S&P 500 and the expense ratio is very low, like 0.13% or whatever. Those are ideal.
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Sep 27, 2017 17:38
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Vanguard also has a bunch of actively managed funds but even they are low cost
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Oct 1, 2017 01:14
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So I don't have access to a 401k so I just maximize my Roth and have a taxable account for the extra money. Is it possible to screw myself in some way with the taxable by putting in too much money? It's pretty much all in the various Vanguard Total ____ funds with low ERs and passive management. I'm just emulating one of the Target Retirement funds for now. My taxable has at least 4 times more money than my Roth.
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Oct 6, 2017 09:12
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Cool thanks. I put in $3k into the total bond market during my initial confusion but I won't add any more to that and won't reinvest the dividends. Also after reading the boglehead site a lot of people have the opinion that even at 25% tax rate that putting municipal bonds vs total bond market is basically a wash. My Roth is 100% in a target retirement fund so I don't have room for extra bonds in there. I'm looking for maximum growth and space potential for the Roth so I can play around with bond allocation in 4-5 years. Mu Zeta fucked around with this message at 13:28 on Oct 6, 2017 |
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Oct 6, 2017 13:25
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e: nevermind
Mu Zeta fucked around with this message at 04:25 on Oct 14, 2017 |
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Oct 14, 2017 01:04
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Xaris posted:Ahoy fellow California resident. I suggest VCAIX (California Intermediate Municipal Tax-Free Bonds). It's pretty safe, "past performance does not equal future performance" and all, but it's historically held principal well and the dividends are both state and federal tax free. Return is not particularly great, but its a solid ~2.5% or so div. Plus you kind of support California With VCAIX I should keep it at least a year before selling right? Otherwise I'm taxed for short term gains?
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Oct 15, 2017 01:27
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There's also VCITX (long-term) which gives a little better yield, but has a little more risk and more prone to some declining principal once interest rates start rising. I'd probably stick with VCAIX if it's mean to be an extension of emergency funds.
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My parents have put all their retirement money into an annuity. They still have 8 or 9 years to go so I wanted to make them Vanguard IRA and taxable accounts (they are self employed, no 401k). I figure their asset allocation at this point should be 50/50, so should I pretty much do Total Bond Market in IRA and Total Stock market in taxable? Or maybe play around with something like a Tax Managed Fund in taxable along with a Lifestrategy fund in the IRA? Their tax bracket is around 28% and California tax is 9%. Mu Zeta fucked around with this message at 20:38 on Oct 16, 2017 |
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Oct 16, 2017 20:36
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Dreadite posted:Have we already covered bond funds in taxable accounts? Is it really a bad idea to hold something like VTB or should I be looking at a tax advantaged bond fund? Does it matter that much if it's purely buy and hold? It depends on your tax bracket. If you're in the 25% and below then it's probably ok to have VTB. If you're above 25 then you should get a muni bond/tax managed bond.
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Oct 22, 2017 21:47
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Ally saving accounts are now at 1.25%. I think AmEx is a little higher but Amex rejected me a couple times when I was a teen so gently caress them.
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Oct 27, 2017 06:10
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I think you have one of those "good problems" that I hear a lot about
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Oct 30, 2017 03:42
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Just converted my Vanguard International to Admiral shares. woop woop
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Nov 1, 2017 15:18
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What a crushing reminder that I'm old
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Nov 1, 2017 16:37
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Well one share of Berkshire Hathaway is down to only $280,000 right now so it's a good a time as any
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Nov 6, 2017 22:40
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I'm extremely disappointed that B exists
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Nov 7, 2017 00:51
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What happens if I sell my Vanguard Total Bond Market in my taxable account at a loss? It says I lost $80 so far and I bought this before I was aware I was supposed to put bonds in my IRA.
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Nov 20, 2017 09:03
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I had to mail in a form to Vanguard to transfer my Merrill Edge account.
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Nov 22, 2017 17:36
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Harveygod posted:Bank of America won't even do them, anymore. That's why I gave up on my old tiny SEP-IRA. Vanguard told me to just send in the paperwork without the BoA medallion and it worked
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Nov 23, 2017 00:32
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Vanguard actually offers CDs if you want something safe. It's about the same as using most online banks though. Ally offers a 11 month no penalty CD if you put in at least $25,000. That means even if you withdraw the money early you keep all the earnings.
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Nov 28, 2017 19:02
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You just stay the course since there will be many more crashes before we retire. I would just keep investing and rebalancing the same way no matter what.
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Nov 30, 2017 23:32
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Ally has upped their 11-month no penalty CD from 1.5% to 1.6%. I'm thinking of closing mine and opening again with the new rate. Probably a pain though.
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Dec 12, 2017 15:13
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I'm assuming they already have retirement accounts? Are those being invested at Merril lynch? The least they could do is open up Savings accounts and CDs at Ally and GSBank. Instead of the 0.03% interest you get at BoA they'll be getting 1.6% - 2.35%. If they've been hanging onto that much as just cash then I bet they'll be very weary of any risk whatsoever so offer the safe options first. If they are scared of online banks just tell them they are fully FDIC insured just liked BoA. If they watched the John Oliver thing remind them that he recommended Vanguard for retirement accounts. https://www.bogleheads.org/wiki/Managing_a_windfall Here is a good starting point. Treat that money like a windfall and your parents have to decide on their risk tolerance. Mu Zeta fucked around with this message at 07:07 on Dec 14, 2017 |
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Dec 14, 2017 06:32
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Opening those bank accounts shouldn't take more than an hour of work. And better than having them all in one place earning practically nothing.
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Dec 14, 2017 10:58
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Animal posted:Absolutely. It's 100% tax advantaged and will sit there accruing interest until the date when you start getting old and health expenses start piling up. I have close to $10,000 in dental expenses coming up and I wish I had funded my HSA way sooner. Are you getting like 5 implants or what?
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Dec 17, 2017 13:51
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At least you'll probably get some Vicodin
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Dec 17, 2017 21:31
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Well with the traditional IRA you're still getting the tax-free growth right?
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Dec 19, 2017 20:55
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Not paying taxes on the capital gains and dividends for 30 years is a big chunk of money IMO.
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Dec 19, 2017 21:12
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Ally currently offers a 12-month CD at 2% with no minimum requirement. The No-Penalty 11 month CD has also been bumped up to 1.75%.
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Dec 20, 2017 17:55
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| # ¿ May 22, 2024 17:21 |
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You're still winning in comparison to the suckers that leave their cash at Bank of America or Chase.
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Dec 20, 2017 18:53
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