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3-Fund Portfolio, What to place in taxable account?

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  • 3-Fund Portfolio, What to place in taxable account?

    Hello WCI Forum-

    We currently invest using the 3-Fund Portfolio.... our 3 funds are FXAIX, FTIHX and FXNAX. We buy and hold these funds in a Solo 401k, HSA and this month will add a taxable account. ETA: We have the same 3 funds inside 2 ROTH IRA's as well, maxed out for 2022.

    Which fund is best for a taxable account? We will end up with ~$36,000 inside of it annually if that matters, hoping to minimize the taxes.

    Thank you in advance!

  • #2
    FXAIX, FTIHX
    Pick the S&P 500 or Intl. Which do you think will throw off more dividends? With Intl you might get a small amount of foreign tax credits. Not the bonds.
    I would suggest not keeping all accounts with equal distributions If you are planning on doing TLH , keeping a separate fund in the taxable will simplify your process. You will want to rebalance in the solo 401k.

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    • #3
      Tim Thank you! We rebalance with every contribution but not necessarily across accounts. Some accounts have 1 of those funds or 2 but the entirety of all accounts is balanced.

      I was planning on allocating the first dollars to the taxable to keep it in 1 fund and then distribute the remaining to others.

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      • #4
        Peds is gone so I will post this for him

        Comment


        • #5
          Originally posted by Lordosis View Post
          Peds is gone so I will post this for him
          What happened to him?

          Comment


          • #6
            Originally posted by xraygoggles View Post

            What happened to him?
            Seconded.

            Comment


            • #7
              Originally posted by xraygoggles View Post

              What happened to him?
              Nothing that I know of. Just stopped posting

              Comment


              • #8
                I vote domestic stock due to the complexities of F1116

                Comment


                • #9
                  Originally posted by Lordosis View Post
                  Peds is gone so I will post this for him
                  Last post by Peds. Followed by the rules.
                  “End of politics.”
                  Voluntary retirement from the Forum. I can only wish the best for Peds.

                  Comment


                  • #10
                    Peds added some great information.

                    Peds was insightful, intelligent, and offered succinct relevant posts.

                    We had some significant disagreements.

                    I wish the best for Peds also.

                    No reason to hold a grudge.

                    Comment


                    • #11
                      For taxable accounts you probably want low turnover low dividend producing stock index funds.

                      The link Lordosis provided is a good one.

                      Many put bonds in IRA and save stock index funds for taxable and Roth.

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                      • #12
                        Originally posted by Lordosis View Post

                        Nothing that I know of. Just stopped posting
                        wow. We lost a good one

                        Comment


                        • #13
                          Do not put the international in taxable. You may get minor credits for foreign taxes paid( and the cpa will charge an extra $100 for the form1116). But more importantly the tax implications of non- qualified dividends- which international funds stubbornly declare. Many other reasons… just not as tax efficient as an S&P

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