Author Topic: Where to start taxable account?  (Read 563 times)

Kevin Aster Tin Obin

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Where to start taxable account?
« on: September 03, 2021, 07:50:04 AM »
Trying to follow advice here and invest proceeds from cash out refi and real estate investment sale.  401k's and IRAs/roths maxed, Started a position in a private equity investment, now need to put money in investments to make >3% returns long term..  Should I just put it in VTI at vanguard where all the 401s and rollover/roth IRAs are? Or put it in Interactive Brokers so I can take a loan out if needed for house down payment? Or Wealthfront? or Ally Invest..

Going in circles trying to decide what to do and then automate it and don't look back.. Had a 401k for over 15 years now, but first time getting into taxable assets since no other debt.

thanks for suggestions

 

JJ-

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Re: Where to start taxable account?
« Reply #1 on: September 03, 2021, 08:30:11 AM »
Trying to follow advice here and invest proceeds from cash out refi and real estate investment sale.  401k's and IRAs/roths maxed, Started a position in a private equity investment, now need to put money in investments to make >3% returns long term..  Should I just put it in VTI at vanguard where all the 401s and rollover/roth IRAs are? Or put it in Interactive Brokers so I can take a loan out if needed for house down payment? Or Wealthfront? or Ally Invest..

Going in circles trying to decide what to do and then automate it and don't look back.. Had a 401k for over 15 years now, but first time getting into taxable assets since no other debt.

thanks for suggestions

This post in another thread gives you options on where to start with sign up bonuses.

Really the asset allocation in the taxable account should align with your overall AA across all accounts, however it is generally not advised to keep tax inefficient funds like bonds in taxable accounts, though there are some exceptions. This is a separate question to where to start taxable account.
« Last Edit: September 03, 2021, 09:42:44 AM by JJ- »

simonsez

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Re: Where to start taxable account?
« Reply #2 on: September 03, 2021, 09:40:43 AM »
https://www.bogleheads.org/wiki/Tax-efficient_fund_placement

I'm not addressing the 'where' but adding on to what JJ said about the 'what' you place in your taxable account.

terran

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Re: Where to start taxable account?
« Reply #3 on: September 03, 2021, 11:39:02 AM »
As long as you invest in ETFs (VTI is good, VXUS if you want some international) you can easily move between many good brokerages in-kind without tax consequences or transaction fees. Some will even pay you a bonus if you transfer a significant amount. If you're happy with Vanguard and have all your other accounts there then I would go with that until/unless you need something they don't give you.

Kevin Aster Tin Obin

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Re: Where to start taxable account?
« Reply #4 on: September 03, 2021, 08:34:11 PM »
So Want to try to vanguard digital advisor to maintain AA and automatic rebalance, etc.  But Vanguard doesn't have tax loss harvesting.. Have had Wealthfront for a month with $10K invested and saved $15 already in tax loss harvesting.  Good suggestion to go vanguard to have everything in one place, but does anyone have experience with proven benefit of tax loss harvesting of wealthfront over Vanguard which doesn't tax loss harvest?

JJ-

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Re: Where to start taxable account?
« Reply #5 on: September 03, 2021, 08:59:56 PM »
So Want to try to vanguard digital advisor to maintain AA and automatic rebalance, etc.  But Vanguard doesn't have tax loss harvesting.. Have had Wealthfront for a month with $10K invested and saved $15 already in tax loss harvesting.  Good suggestion to go vanguard to have everything in one place, but does anyone have experience with proven benefit of tax loss harvesting of wealthfront over Vanguard which doesn't tax loss harvest?
You can do tax loss harvesting yourself without paying somebody else a % to do it automatically. Just buy a similar fund after selling for a loss (VOO for VTI for example).

cool7hand

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Re: Where to start taxable account?
« Reply #6 on: September 05, 2021, 09:12:47 AM »
We manage it all ourselves, including rebalancing and tax loss harvesting, to save on fees. We like Schwab. The fees are low. They offer their own low-fee index funds, plus those from other vendors including Vanguard. We found a local branch office advisor who is pretty sophisticated and gets our goals. He helped us kick the tires on whether to use insurance products to max out my wife's pension. As I recall, you get three free wire transfers a quarter, which is nice if the need ever arrives. We also linked our credit cards and my wife's 457, which we can't transfer to Schwab, so we can see our complete financial picture in one place. We use a spreadsheet with all investments anywhere to help us rebalance. Tax loss harvesting is the biggest pain, but getting used to this labor is just like anything else worth learning.

JGS1980

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Re: Where to start taxable account?
« Reply #7 on: September 05, 2021, 09:30:42 AM »
Trying to follow advice here and invest proceeds from cash out refi and real estate investment sale.  401k's and IRAs/roths maxed, Started a position in a private equity investment, now need to put money in investments to make >3% returns long term..  Should I just put it in VTI at vanguard where all the 401s and rollover/roth IRAs are? Or put it in Interactive Brokers so I can take a loan out if needed for house down payment? Or Wealthfront? or Ally Invest..

Going in circles trying to decide what to do and then automate it and don't look back.. Had a 401k for over 15 years now, but first time getting into taxable assets since no other debt.

thanks for suggestions

Go for simplicity and open a "brokerage" account at Vanguard. The above poster is incorrect, I Tax Loss Harvest just fine at Vanguard. Put it in VTI or VTSAX, and you're done. If you want international, Vanguard International Index Fund Admiral is fine too in a Taxable Account.