I like the 3 fund portfolio. Simplicity has its merits.
It appears you have a high income. You admit that it’s probably foolish to choose against deferring tax by using a traditional 401(k). I would tend to agree. Reducing taxable income now will probably save you $7,000 to $9,000 depending on where you live. You’ll pay tax later when you take it out, but likely not nearly as much.
I won’t comment on asset protection; others on this forum know far more than I do.
I’ve sung the praises of tax loss harvesting before, and I’ll do it again. I like to hold funds in taxable that I don’t have elsewhere to avoid potential wash sales. As the opportunity arises, you could exchange from VTSAX to VFIAX (S&P 500) and use VLCAX (Large Cap Index) as a TLH partner to VFIAX in the future.
I would invest the bonus into VFIAX or if it’s truly “play money” you could put it in whatever fund you think has the most upside, perhaps something that’s taken a beating lately. You’ve got plenty of options with that criteria
Sounds good, thanks for your input.
I'm looking into switching back to a traditional 401k. That being said, I currently work in a no income tax state, I would likely be targeting my home state of California for retirement so I guess that is one item working in favor of the Roth 401k.
I have been tax loss harvesting of late too. I've completed the conversions for the backdoor Roth IRA and dividends are set to accumulate in a money market account. Have already exchanged VTSAX to VFIAX and am looking to return to VTSAX in 31 days (or perhaps transition to VLCAX) in my taxable account.
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