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SlapActionJackson posted:I executed a tax loss harvest trade last week, looks like I get to do it again this afternoon. Just space it out enough to avoid the wash sale rule and you can go right back to VTI.
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Jan 21, 2022 19:04
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Sure, but if the market continues to lose 4% a week, I'm going to TLH all the way down. Need 4 security pairs to do that and cover the full 30 day span.
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Jan 21, 2022 19:09
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IVV, VV, SPY, SPLG... after that the expense ratios start to take off.
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Jan 21, 2022 19:14
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defmacro posted:w.r.t. TreasuryDirect: I've noticed that 1Password, if used to autofill the username, will autofill the password before the client-side javascript blocks the ability to do that. Not sure if other password managers do this, but I've never had to use the awful keyboard thing. I have noticed the same thing. Never needed to mess with the Javascript manually.
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Jan 21, 2022 19:16
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SlapActionJackson posted:I executed a tax loss harvest trade last week, looks like I get to do it again this afternoon. Space Fish posted:IVV, VV, SPY, SPLG... after that the expense ratios start to take off. I'd separate out the S&P based ETFs from the broad market ETFs, although yes, they will be highly correlated. S&P: VOO, SPTM (S&P 1500) broad US market: VTI, ITOT, SCHB, VONE, SCHX, VV, VTHR every ticker there follows a different index and has a low ER bonus, broad developed international tickers: VEA, SCHF, IDEV, SPDW, IEFA pmchem fucked around with this message at 20:06 on Jan 21, 2022 |
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Jan 21, 2022 19:20
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Sure do love watching my entire Roth IRA contribution disappear the week after I made it.
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Jan 21, 2022 19:40
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you ate my cat posted:Sure do love watching my entire Roth IRA contribution disappear the week after I made it. Hopefully Netflix & Bitcoin will recover by the time you retire next year?
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Jan 21, 2022 19:52
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Motronic posted:That's great if it works, and I immediately wanted to try it out but just lol: lol at least they're committed to the bit
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Jan 21, 2022 20:04
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pmchem posted:I'd separate out the S&P based ETFs from the broad market ETFs, although yes, they will be highly correlated. Agreed, but the correlation between them is good enough for my purposes here. In case it helps anyone else: pre:Ticker Index ER (bps) ------ --------------------- -------- VTI CRSP US Total Market 3 ITOT NYSE + NASDAQ + CBOE 3 SCHB Largest 2500 US Equities 3 VONE Russel 1000 8 SCHX DJ Large Cap (top 750) 3 VV CRSP US Large Cap (581) 4 VTHR Russel 3000 10 VOO S&P 500 3 IVV S&P 500 3 SPLG S&P 500 3 SPY S&P 500 9 SPTM S&P 1500 3 SlapActionJackson fucked around with this message at 21:12 on Jan 21, 2022 |
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Jan 21, 2022 20:55
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you ate my cat posted:Sure do love watching my entire Roth IRA contribution disappear the week after I made it. I have been averaging into my Roth's indexes over time this month and feel some kind of way about everything dipping another 0.60-1.00% per day. Space Fish fucked around with this message at 21:46 on Jan 21, 2022 |
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Jan 21, 2022 21:16
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Space Fish posted:I have been averaging into my indexes over time this month and feel some kind of way about everything dipping another 0.60-1.00% per day. I made my normal purchases and I am sleeping fine.
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Jan 21, 2022 21:33
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cheap stocks today buy some more
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Jan 21, 2022 21:37
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My strategy of max contributing my IRA in late December and early January is a nice early test of my supposed set it and forget it philosophy. Maybe things will uptick after I finally roll over those my old job retirement funds.
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Jan 21, 2022 21:51
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spwrozek posted:I made my normal purchases and I am sleeping fine. yea pmchem posted:Jason Zweig of WSJ's Intelligent Investor column picked up the Vanguard target date fund taxable event story that was discussed here some number of days ago: although what vanguard did is not customer friendly at all, i do seriously question the intelligence of someone holding tdfs in a taxable account
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Jan 21, 2022 22:15
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KYOON GRIFFEY JR posted:although what vanguard did is not customer friendly at all, i do seriously question the intelligence of someone holding tdfs in a taxable account I'm not familiar enough with the details, is it really that bad a tax drag? Or is there another reason?
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Jan 21, 2022 22:19
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Well yeah in normal years it's not ideal to have taxable bonds in a taxable account. Target Date Funds also rebalance on their own so it creates even more taxable events. It took me about an hour of research to learn to avoid those funds in my taxable account before I started investing. The tax drag isn't usually that bad but it was a really weird year with these funds.
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Jan 21, 2022 22:24
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Just about any financial advice around TDFs will say they are best kept in a tax-advantaged account. No one should use a prospectus to issue warnings about tax drag.
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Jan 21, 2022 22:30
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pokeyman posted:I'm not familiar enough with the details, is it really that bad a tax drag? Or is there another reason? to maintain proportions of underlying funds in accordance with the fund's objectives, the fund constantly rebalances by selling the underlying funds. this creates capital gains that incur taxes in taxable accounts.
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Jan 21, 2022 22:39
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This particular Middle Finger to small investors wasn't a rebalance though, it was a shuffle due to the influx of Institutional shareholders. The irregularity of it, and the huge capital gains dividend, is why they gave ~6 weeks of advance notice
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Jan 21, 2022 22:54
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On the other hand everyone including small investors will have the lower ER fees so that's a win
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Jan 21, 2022 23:02
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It'll pay for itself in no time!!
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Jan 21, 2022 23:13
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I'm sure it's a small fraction of people that put it in their taxable. The rest of us win!
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Jan 21, 2022 23:27
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GoGoGadgetChris posted:This particular Middle Finger to small investors wasn't a rebalance though, it was a shuffle due to the influx of Institutional shareholders. yeah, i'm aware, but the rebalances are why you shouldn't keep that poo poo in taxable accounts anyway
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Jan 21, 2022 23:56
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I've honestly never even heard of someone investing in target funds outside of tax protected accounts. I suppose it might be a thing for folks that already have all their IRAs/401ks maxed. Still a little irritating to see the big rich eating the small rich again and again.
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Jan 22, 2022 00:00
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SlapActionJackson posted:Agreed, but the correlation between them is good enough for my purposes here. Ooooo this is my opportunity to get out of the FSKAX i regretted buying
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Jan 22, 2022 00:15
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It's good on the sense that the fund is now balanced the way it's supposed to be. The cap gains payout is completely offset by an instant drop in the price of the fund, it's a neutral event other than it being potentially taxable. From the outside it looks like the fund dropped a bunch of you don't know what's happening.
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Jan 22, 2022 00:42
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pmchem posted:Jason Zweig of WSJ's Intelligent Investor column picked up the Vanguard target date fund taxable event story that was discussed here some number of days ago: lol, this guy was fishing around in the bogleheads forum a few days ago on the topic at least someone's speaking truth to power i guess
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Jan 22, 2022 11:24
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Very basic Roth IRA question, but just want to make sure this is correct: If you had a gross salary of 149k, and plans to max a traditional 401k (20,500) in 2022. MAGI would be reduced to 128.5k and therefore below the 129k limit to also a max a Roth IRA without the need to backdoor. Right?
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Jan 22, 2022 13:58
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Turns out my wife was one of the holders of Vanguard TDFs in taxable accounts. She doesn't have a 401k option so once she maxed out her IRA space she just kept doing the same thing in a taxable account. Our finances are semi-separate so I never noticed but to be fair, I don't think I would have known it was potentially dangerous either. Balance wasn't crazy high so it shouldn't be a huge problem but pretty annoying.
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Jan 22, 2022 17:36
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caluki posted:Very basic Roth IRA question, but just want to make sure this is correct: If you had a gross salary of 149k, and plans to max a traditional 401k (20,500) in 2022. MAGI would be reduced to 128.5k and therefore below the 129k limit to also a max a Roth IRA without the need to backdoor. Right?
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Jan 22, 2022 17:55
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Thufir posted:Turns out my wife was one of the holders of Vanguard TDFs in taxable accounts. She doesn't have a 401k option so once she maxed out her IRA space she just kept doing the same thing in a taxable account. Our finances are semi-separate so I never noticed but to be fair, I don't think I would have known it was potentially dangerous either. Balance wasn't crazy high so it shouldn't be a huge problem but pretty annoying. I was gonna say maybe fix it in future years by converting to a ETF version, but I assume that would hit you (her) with a capitol gains tax. I’m not where I have taxable accounts yet, but I don’t think I really knew about it until others were posting about it here in just the past few months.
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Jan 22, 2022 18:10
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Duckman2008 posted:I was gonna say maybe fix it in future years by converting to a ETF version, but I assume that would hit you (her) with a capitol gains tax. Yeah, we've changed future contributions to be other stuff but not sure what / if anything to do about the existing money, though if stonks keep going down maybe we could sell to move it and book a loss?
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Jan 22, 2022 20:24
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You can also turn off the automatic dividend reinvestment and contribute to other.
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Jan 22, 2022 20:26
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Duckman2008 posted:I was gonna say maybe fix it in future years by converting to a ETF version, but I assume that would hit you (her) with a capitol gains tax. There are no equivalent ETF shares for the TDF funds, so she'd have to sell shares and trigger capital gains. If you wanted to convert an index fund to ETF (for a fund that is actually eligible) it would be a nontaxable event. It's actually quite easy to do. Honestly, it's not a big enough deal to worry about. It's less tax efficient than a perfectly designed multi-location (taxable/roth/traditional, etc) portfolio, but you could do much worse. At least it's not active funds that throw off huge capital gains distributions every year.
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Jan 22, 2022 20:29
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Sorry, it's my fault, everyone. I cashed out my Vanguard TDFs last year to buy a house. I figured if I was going to have to pay capital gains so should the rest of America.
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Jan 22, 2022 20:32
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Thufir posted:She doesn't have a 401k option so once she maxed out her IRA space she just kept doing the same thing in a taxable account. Not really helpful now, but would an i401k have been a good option here?
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Jan 22, 2022 22:35
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Salami Surgeon posted:Ah OK. I think I see what you mean I think I got it! Retirement Projector Estimator  If anything this graph shows how important it is to start investing early. Or you will miss out on the magic of compounding interest and basically have to keep working. Get in early! I want to include social security income along with withdrawals for retirement but I'll work on that later this weekend.
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Jan 22, 2022 22:38
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Harveygod posted:Not really helpful now, but would an i401k have been a good option here? She’s a w-2 employee for an couple small businesses that don’t offer any 401k options, not self-employed so I don’t think she qualifies for that, though I haven’t looked into it super much.
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Jan 23, 2022 00:19
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caluki posted:Very basic Roth IRA question, but just want to make sure this is correct: If you had a gross salary of 149k, and plans to max a traditional 401k (20,500) in 2022. MAGI would be reduced to 128.5k and therefore below the 129k limit to also a max a Roth IRA without the need to backdoor. Right? Yes, 401k deferrals lower your MAGI and open up eligibility for front-door roth contributions. However, if you're that close to the edge the usual advice is to go ahead and back-door the contributions anyway since it's pretty easy. That way, if you end up earning more than you expected and over the limit, you don't have to re-characterize the contributions and backdoor them after the fact - that's a bigger pain. But you should also be aware that congress is looking to close the backdoor loophole. IMO, there's no chance BBB passes at this point, but if the dems try to chop it up and pass smaller chunks of it, killing backdoor roths might still happen.
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Jan 23, 2022 00:34
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I'm looking to make higher returns on my general savings fund and am unsure where to put it. My retirement contributions are swell, I have money to cover 6+ months of expenses, etc and am otherwise in great financial shape. Money saved above the emergency fund and day to day expenses is sitting in a "high rate" bank account that earns 1% on balances up to $10k, and 0.1% above that. I have just over $10k in it, so the marginal interest rate for new deposits is pretty low. It's not money that I need, but it will could be used to fund a new car in a few years, or be part of a down payment if and when we move houses some day, or similar. As such my risk tolerance is moderate to low. It also has an uncertain time horizon because my car could get totaled tomorrow and I might decide I want to jump on a new car immediately, or I could get 5 more years out of it, for example. My expectation is that the money will be sitting for at least a few years, though. I was thinking of moving that fund to a bond ETF or mutual fund. I have my eye on the Vanguard tax-free bond mutual fund for MA, which is where I live. There's also some junk bond mutual funds for higher returns but those may be too risky for me. Would an investment vehicle such as this be appropriate for the non-specific savings I have, or should I stick to a bank account or CD? Another question is what happens to bond prices if, as expected, the fed rate starts rising this year. My understanding is that they generally go down in value when that happens, but because I would be investing in a bond index fund, I'm not sure what the effect would be.
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Jan 23, 2022 00:37
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