Author Topic: Taxable Account  (Read 4391 times)

dalekeener

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Taxable Account
« on: April 20, 2016, 02:59:11 AM »
Looking for some basic advice.  I have around 20k to put to work in a taxable Schwab account.  I am going to add around $800 per month to the account. I am not in a high tax bracke (make around 62k per year) t, so may not need municipal bonds.  Should I use an ETF or a Total Market, SP 500 mutual fund for these funds.  Any help in allocating these assets would be of extreme help.

Thanks,

Dale

rugorak

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Re: Taxable Account
« Reply #1 on: April 20, 2016, 06:35:33 AM »
Why Schwab if we may ask? As I am sure you'll see most of us around here are Vanguard fans. Lower fees and all that.

There really isn't a huge difference between ETF's and Mutual funds other than one fluctuates in price throughout the day and the other does all trades at the end of the day. I do my taxable to VTI which is a total market ETF, primarily because when I started I didn't have enough to get the lower expense ratio in a mutual fund compared to what I got with the ETF. But it is pretty much the same as VTSAX. You could do the same but first you should decide if that is the right fit for you. Figure out if you want to go all in to stocks or want some bonds, etc. Allocate whatever fits your risk threshold, etc. You'll see many other threads suggesting some sort of similar thing. Read up and figure out what works best for you.

NoStacheOhio

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Re: Taxable Account
« Reply #2 on: April 20, 2016, 07:19:49 AM »
Why Schwab if we may ask? As I am sure you'll see most of us around here are Vanguard fans. Lower fees and all that.

There really isn't a huge difference between ETF's and Mutual funds other than one fluctuates in price throughout the day and the other does all trades at the end of the day. I do my taxable to VTI which is a total market ETF, primarily because when I started I didn't have enough to get the lower expense ratio in a mutual fund compared to what I got with the ETF. But it is pretty much the same as VTSAX. You could do the same but first you should decide if that is the right fit for you. Figure out if you want to go all in to stocks or want some bonds, etc. Allocate whatever fits your risk threshold, etc. You'll see many other threads suggesting some sort of similar thing. Read up and figure out what works best for you.

SCHB actually has a lower fee than VTI, and free trades with Schwab accounts.

2buttons

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Re: Taxable Account
« Reply #3 on: April 20, 2016, 07:22:55 AM »
Yup, so glad they are in a fee war, since that means both schwab and vanguard investors win.  I am with schwab.  I would start with SWPPX.   

mikesinWV

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Re: Taxable Account
« Reply #4 on: April 20, 2016, 09:44:48 AM »
Just under two months ago I dropped 10k each into VIG & VBILX  in my Vanguard account.  I have other non-taxable assets in a savings account so wanted something to give me a bit more upside (and downside!)

I'm up 6.7% in the first and .87% in the second. 

Schwab probably has similar ETF/Index funds. 

MDM

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Re: Taxable Account
« Reply #5 on: April 20, 2016, 02:02:41 PM »
Looking for some basic advice.  I have around 20k to put to work in a taxable Schwab account.  I am going to add around $800 per month to the account. I am not in a high tax bracke (make around 62k per year) t, so may not need municipal bonds.  Should I use an ETF or a Total Market, SP 500 mutual fund for these funds.  Any help in allocating these assets would be of extreme help.

See https://www.bogleheads.org/wiki/Three-fund_portfolio and https://www.bogleheads.org/wiki/ETFs_vs_mutual_funds.

ShoulderThingThatGoesUp

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Re: Taxable Account
« Reply #6 on: April 20, 2016, 02:25:56 PM »
I like tying all my accounts to Personal Capital to get an idea of my overall asset allocation. Then I compare to my goals and add new money using Schwab's commission free ETFs wherever I need to.

smartmoneymd

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Re: Taxable Account
« Reply #7 on: April 20, 2016, 03:03:39 PM »
I second SCHB, if you already have other invested funds at Schwab. The web interface is not bad either, although I sort of like Fidelity's better.

NoStacheOhio

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Re: Taxable Account
« Reply #8 on: April 20, 2016, 05:01:50 PM »
I second SCHB, if you already have other invested funds at Schwab. The web interface is not bad either, although I sort of like Fidelity's better.

I've been with Fidelity for awhile, and I was stunned at how awkward the Schwab interface was. But it gets the job done.

aspiringnomad

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Re: Taxable Account
« Reply #9 on: April 22, 2016, 11:20:07 PM »
SCHB for US broad market (1,500 companies I believe) and SCHF for international. Both slightly cheaper than the Vanguard equivalents.