Tax laws can be so complex, and it’s super helpful to break them down like this. Understanding how different policies can impact our finances is crucial for making informed decisions.
Making profitable investments during this time of political change can be risky without that insight. For me, working with an adviser is the best first step to navigate these complexities and make informed choices.
I think having an investment advisor is the way to go. I've been with one because I lack the expertise for the market. I made over $490K during the recent dip, highlighting that there's more to the market than we average folks know.
The problem wasn't so much that it was a mutual fund as much as it was a target date fund. I think Vanguard assumed it was only being used in tax sheltered retirement accounts. Lesson seems to be, dont use TDFs in taxable accounts. If you want them replicate the asset allocation with individual index funds/etfs. TDF rebalancing can also cause taxes, so better to control allocation yourself in taxable accounts.
Mutual funds were historically all actively managed. ETFs were historically all passive/indexed. But now both have both. Tax efficiency isn't about mutual fund vs. ETF, it's about active vs. passive management.
My wife had her Roth in a Vanguard TDF. She looked at the performance at each time frame in comparison to VFIAX and the TDF lost at every timeframe. She didn't feel as though the risk increased much to switch to the ETF so she moved it. She's 50 so plenty of time until retirement.
If I have a question for you guys, where can I post it to see if you can answer it? My company I work for has a Roth and traditional 401k with a 4% match. Just trying to figure out which I should invest in. I’m 32. With next to nothing in retirement. New to FOO as well.
They have a free visual aid on their website that shows their recommendations for each tax bracket. Additionally, there are online calculators where you can enter your specifics (withholdings, state and local tax, etc) and they spit out charts comparing Roth to traditional 401k contributions. Highly recommend.
Love the show! Is there a difference between a high yield money market account and a high yield avings account? Is one better than the other. Looking to park my emergency fund which is 20k. Thanks
I'm having a white people taco night. We're getting taco shells from the grocery store And ground beef from the grocery store And shredded cheese from the grocery store And Ortega sauce from the grocery store And I can't wait to sit at my table And sprinkle everything on into my shells And eat each taco as fast as I can So I can have another taco (Or two, or three, or four! It's a white people taco night White people taco night It's not limited to only white people But white people love it the most And we like lettuce, and we like cheese (We like cheese) And we like tomatoes, and sour cream (Sour cream) And we like to pretend we work at Taco Bell But nobody wants to work at Taco Bell We got our thanks to give to the grocery store And mom and dad for going to the store And to ourselves for helping unload the car And to tacos themselves, hey, we love you, tacos White people taco night White people taco night It's not limited to only white people But white people love it the most White people taco night White people taco night It's not limited to only white people But white people love it the most White people taco night White people taco night It's not limited to only white people But white people love it the most
Tax laws can be so complex, and it’s super helpful to break them down like this. Understanding how different policies can impact our finances is crucial for making informed decisions.
Making profitable investments during this time of political change can be risky without that insight. For me, working with an adviser is the best first step to navigate these complexities and make informed choices.
I think having an investment advisor is the way to go. I've been with one because I lack the expertise for the market. I made over $490K during the recent dip, highlighting that there's more to the market than we average folks know.
Hmmm this is quite interesting, Please can you leave the info of your investment advisor here? I’m in dire need for one.
Nicole Anastasia Plumlee can't divulge much. Most likely, the internet should have her basic info, you can research if you like.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get.
The problem wasn't so much that it was a mutual fund as much as it was a target date fund. I think Vanguard assumed it was only being used in tax sheltered retirement accounts. Lesson seems to be, dont use TDFs in taxable accounts. If you want them replicate the asset allocation with individual index funds/etfs. TDF rebalancing can also cause taxes, so better to control allocation yourself in taxable accounts.
U a herb my g
Mutual funds were historically all actively managed. ETFs were historically all passive/indexed. But now both have both.
Tax efficiency isn't about mutual fund vs. ETF, it's about active vs. passive management.
My wife had her Roth in a Vanguard TDF. She looked at the performance at each time frame in comparison to VFIAX and the TDF lost at every timeframe. She didn't feel as though the risk increased much to switch to the ETF so she moved it. She's 50 so plenty of time until retirement.
If your Vanguard mutual fund also has an ETF (for example, VTSAX and VTI), the index fund has the same tax advantages as the ETF.
For now
Are you shielded from turn over ratio costs if you put a fund like VITAX in a roth ira?
If I have a question for you guys, where can I post it to see if you can answer it? My company I work for has a Roth and traditional 401k with a 4% match. Just trying to figure out which I should invest in. I’m 32. With next to nothing in retirement. New to FOO as well.
Take company match in 401k and max out Roth. If you can invest more after maxing Roth, increase 401k contributions
Definitely 100% Roth. You'll be glad you did when you're in your 50s.
They have a free visual aid on their website that shows their recommendations for each tax bracket.
Additionally, there are online calculators where you can enter your specifics (withholdings, state and local tax, etc) and they spit out charts comparing Roth to traditional 401k contributions. Highly recommend.
VTSAX makes it easier to DCA. Any reason to choose its ETF equivalent (VTI) for a taxable brokerage?
lower ER. Can use at other brokerages. Can transfer between brokerages. Can set limit orders
Love the show! Is there a difference between a high yield money market account and a high yield avings account? Is one better than the other. Looking to park my emergency fund which is 20k. Thanks
Synchrony bank CD is 5.5%. Put half in there and half in a Ally Bank Savings at 4.5%.
and THATS why hes the money guy
People worry about taxes too much. Buy and hold the S&P 500 forever. Sleep like a baby
Wake up screaming every hour?
I'm having a white people taco night.
We're getting taco shells from the grocery store
And ground beef from the grocery store
And shredded cheese from the grocery store
And Ortega sauce from the grocery store
And I can't wait to sit at my table
And sprinkle everything on into my shells
And eat each taco as fast as I can
So I can have another taco (Or two, or three, or four!
It's a white people taco night
White people taco night
It's not limited to only white people
But white people love it the most
And we like lettuce, and we like cheese (We like cheese)
And we like tomatoes, and sour cream (Sour cream)
And we like to pretend we work at Taco Bell
But nobody wants to work at Taco Bell
We got our thanks to give to the grocery store
And mom and dad for going to the store
And to ourselves for helping unload the car
And to tacos themselves, hey, we love you, tacos
White people taco night
White people taco night
It's not limited to only white people
But white people love it the most
White people taco night
White people taco night
It's not limited to only white people
But white people love it the most
White people taco night
White people taco night
It's not limited to only white people
But white people love it the most
Who buys mutual funds anymore? Do the money guys buy them? Needle in a haystack that outperforms spy
Millions of people.