Using Vanguard's advisory service would be a good choice. I think the fee is 0.3% AUM, which is fairly low. That said, investing in a low fee broad based index funds is not that hard. Generally, keep fixed income (CDs, bonds, notes, bills, saving accounts ) in tax protected accounts because dividends/interest are tax at your top marginal rate vs a lower "qualified dividend" long term capital gain rate of 15% for most of us.
You could use the funds that are in your target fate fund, but place them more tax efficiently. If you use Vanguards PAS likely they will come close to doing that.
I agree with you on the retirement fund and bills to VTI or maybe using some of that VTI bound money to go into a total international stock index, maybe in the range of 20-40% of VTI.
Others have suggested thinking about an asset allocation plan which generally means how much money stocks vs fixed income. Consider your need to take risk, willingness and ability to take risk. You are young, have a good income and a nice bit of savings/investment so while your need is low, the ability is high and so is your willingness. Again, those target retirement funds have an allocation that likely would fit your situation.
Long term capital gains taxes for me is 15%. If you sell in a taxable account you will pay a short term and long term rate. Here is a table https://www.nerdwallet.com/article/taxe ... -tax-rates. Long term rates applies to investments held for at least one year. Your short term rate will be your highest tax bracket. Go to your income tax return, find your taxable income, look up the 2024 tax bracket rates and that is your short term cap gains rate. Simple really.
The Boglehead wiki has a nice article on tax efficient fund placement in interested.
You could use the funds that are in your target fate fund, but place them more tax efficiently. If you use Vanguards PAS likely they will come close to doing that.
I agree with you on the retirement fund and bills to VTI or maybe using some of that VTI bound money to go into a total international stock index, maybe in the range of 20-40% of VTI.
Others have suggested thinking about an asset allocation plan which generally means how much money stocks vs fixed income. Consider your need to take risk, willingness and ability to take risk. You are young, have a good income and a nice bit of savings/investment so while your need is low, the ability is high and so is your willingness. Again, those target retirement funds have an allocation that likely would fit your situation.
Long term capital gains taxes for me is 15%. If you sell in a taxable account you will pay a short term and long term rate. Here is a table https://www.nerdwallet.com/article/taxe ... -tax-rates. Long term rates applies to investments held for at least one year. Your short term rate will be your highest tax bracket. Go to your income tax return, find your taxable income, look up the 2024 tax bracket rates and that is your short term cap gains rate. Simple really.
The Boglehead wiki has a nice article on tax efficient fund placement in interested.
Statistics: Posted by jimkinny — Mon Nov 11, 2024 4:23 am — Replies 15 — Views 1206