Greetings! I anticipate maxing out my tax-sheltered (Roth IRA and HSA) contributions this year for the first time, and thus want to extend to investing in a taxable account. My tax-sheltered allocation is as follows:
25.2% FSKAX (Fidelity Total Market Index)
8.4% FISVX (Fidelity Small Cap Value Index)
8.4% FSRNX (Fidelity Real Estate Index)
16.8% FTIHX (Fidelity Total International Index)
5.6% AVDV (Avantis International Small Cap Value)
5.6% VNQI (Vanguard Global Ex-US Real Estate Index)
9.6% FXNAX (Fidelity U.S. Bond Index)
6.0% FBIIX (Fidelity International Bond Index)
3.6% FUMBX (Fidelity Short-Term Treasury Bond Index)
4.8% FIPDX (Fidelity Inflation-Protected Bond Index)
2.0% FENY (Fidelity MSCI Energy Index)
2.0% GDX (Vaneck Gold Miners)
2.0% IAU (iShares Gold Trust)
TOTAL: 100%
I am hoping for feedback on how to approach my taxable account, and which funds to exclude.
First, I am thinking of simply treating my taxable account as a separate 'bin' with its own asset allocations, i.e., not even trying to rebalance across the tax-sheltered/taxable at this stage. Since I rebalance with inflows and don't know ahead of time exactly how much money I'll be able to contribute to taxable, my thinking is that, since certain funds like REITs should be excluded from taxable accounts, it would be very hard to rebalance across the two.
Second, I understand that some of these assets are tax-unfriendly. For example, from reading The Bogleheads' Guide to Investing, I know that I should not include REITs or these bond funds in a taxable account. So I am thinking to over-allocate them a little in the tax-sheltered accounts, while excluding them from taxable. I'm also thinking to use ETFs instead of funds. For example, in taxable, I might take the 8.4% FSRNX and simply add that amount to FSKAX (or VTI, Vanguard ETF equivalent) instead. I wondering if anyone can provide insight on which ones should definitely be excluded from a taxable account?
Thank you so much!
25.2% FSKAX (Fidelity Total Market Index)
8.4% FISVX (Fidelity Small Cap Value Index)
8.4% FSRNX (Fidelity Real Estate Index)
16.8% FTIHX (Fidelity Total International Index)
5.6% AVDV (Avantis International Small Cap Value)
5.6% VNQI (Vanguard Global Ex-US Real Estate Index)
9.6% FXNAX (Fidelity U.S. Bond Index)
6.0% FBIIX (Fidelity International Bond Index)
3.6% FUMBX (Fidelity Short-Term Treasury Bond Index)
4.8% FIPDX (Fidelity Inflation-Protected Bond Index)
2.0% FENY (Fidelity MSCI Energy Index)
2.0% GDX (Vaneck Gold Miners)
2.0% IAU (iShares Gold Trust)
TOTAL: 100%
I am hoping for feedback on how to approach my taxable account, and which funds to exclude.
First, I am thinking of simply treating my taxable account as a separate 'bin' with its own asset allocations, i.e., not even trying to rebalance across the tax-sheltered/taxable at this stage. Since I rebalance with inflows and don't know ahead of time exactly how much money I'll be able to contribute to taxable, my thinking is that, since certain funds like REITs should be excluded from taxable accounts, it would be very hard to rebalance across the two.
Second, I understand that some of these assets are tax-unfriendly. For example, from reading The Bogleheads' Guide to Investing, I know that I should not include REITs or these bond funds in a taxable account. So I am thinking to over-allocate them a little in the tax-sheltered accounts, while excluding them from taxable. I'm also thinking to use ETFs instead of funds. For example, in taxable, I might take the 8.4% FSRNX and simply add that amount to FSKAX (or VTI, Vanguard ETF equivalent) instead. I wondering if anyone can provide insight on which ones should definitely be excluded from a taxable account?
Thank you so much!
Statistics: Posted by AssetClassJunkie — Sat Apr 27, 2024 4:50 am — Replies 0 — Views 70