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Need help with asset location decision
Old 07-08-2007, 08:55 PM   #1
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Need help with asset location decision

I have been reviewing my portfolio based on what I have been reading here and on other links that people mentioned in their posts.

I have made some moves toward reducing costs with index funds and have taken positions in FSTMX (taxable) and FBIDX (ira) and plan to move more toward ETF or index funds as I continue getting things in order.

I have been reading about putting cash and bonds in the IRA since it will be taxed at full rate in either case. I am thinking about selling FDIVX and siome other funds in my IRA and buying the same amount in the taxable account.

I have carry forward losses equql to 5% of my portfolio value that can cancel capital gains in the taxable account.

I am currently employed with a good salary and expect to be working for at least 3 more years. I am 50 and my tax sheltered accounts are 35% of my portfolio.

Should I swap the funds into cash in the IRA and replace in the taxable?
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Old 07-08-2007, 09:20 PM   #2
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Well, I am not familiar with all your ticker symbols, so you might as well be writing in Chinese. Best place on the web for free personalized asset allocation advice is at: Bogleheads :: View Forum - Investing and Personal Finance Check it out.
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Vanguard funds in Fidelity account ?
Old 07-08-2007, 09:22 PM   #3
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Vanguard funds in Fidelity account ?

I am happy with my Fidelity Total Market and Bond Index funds, but I see mention of some Vanguard index funds like the Emerging Markets that Fidelity may not offer.

I would like to keep my investments all on the Fidelity statement and can buy Vanguard funds in the Fidelity account for a $70 one time fee.

Assuming I buy a pretty large chunk ($40k or more) one time only, do you think the $70 hit is ok for the convenience? Do you think I will get stuck later if I want to rebalance?

Would I be better just sucking it up and dealing directly with Vanguard?

Also any suggestions on ETFs for International or Emerging Markets that would have low costs like index funds?

Thanks in advace for the help.
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Old 07-08-2007, 09:25 PM   #4
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Originally Posted by LOL! View Post
Well, I am not familiar with all your ticker symbols, so you might as well be writing in Chinese. Best place on the web for free personalized asset allocation advice is at: Bogleheads :: View Forum - Investing and Personal Finance Check it out.

Sorry.

FDIVX = fidelity diversified international fund

FSTMX = fidelity total market index fund

FBIDX = fidelity bond index fund
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Old 07-08-2007, 09:28 PM   #5
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Originally Posted by LOL! View Post
Well, I am not familiar with all your ticker symbols, so you might as well be writing in Chinese. Best place on the web for free personalized asset allocation advice is at: Bogleheads :: View Forum - Investing and Personal Finance Check it out.
Thanks for the link. I added it to my favorites. It looks interesting.
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Old 07-08-2007, 09:38 PM   #6
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Originally Posted by joesxm View Post
I am happy with my Fidelity Total Market and Bond Index funds, but I see mention of some Vanguard index funds like the Emerging Markets that Fidelity may not offer.

Also any suggestions on ETFs for International or Emerging Markets that would have low costs like index funds?

Thanks in advace for the help.
There are Vanguard ETF's for these that you can buy at Fido.

-h
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Old 07-08-2007, 09:38 PM   #7
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If you like Fido and are considering ETFs, why are you writing about Vanguard funds?

As for reading here and other links, I suggest you add some books lke Rick Ferri's All About Asset Allocation. The idea is to figure out your asset allocation now before you start making changes. That way, you won't have to make changes twice or three times or four times as you learn new things.

Some things to consider:
1. Are you going total market weights or slice-and-dice with tilt to small cap and value?
2. For bonds, are you going to go total market or stick with shorter maturities? Some folks advocate a healthy slug of TIPS, short-term and intermediate with rebalancing among them.
3. International? Same as #1. And what about small cap value international?
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Old 07-08-2007, 10:21 PM   #8
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FDIVX is closed, and I don't think you'll be able to buy it in another account.

Audrey
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Old 07-08-2007, 10:42 PM   #9
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FDIVX is closed, and I don't think you'll be able to buy it in another account.

Audrey
Good point, but I have a small position in the taxable account so I can buy more.

I will have to keep that in mind if I switch to ETF and keep a few shares in case I ever want to go back.

What about the general question? If I am holding cash and likely to stay that way for a few years or buy bonds with it, should I switch it into the IRA?

I think I should and I agree with the previous suggestion that I probably should not rush into it and formulate a comprehensive asset allocation and location plan before taking action.

Thanks for all the input so far.
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Old 07-08-2007, 10:59 PM   #10
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You want your bonds in your Tax deffered accounts. helps with the taxes. Put your large equity index funds in the taxable accounts. You might want to start by coming up with your asset allocation first and then you can put the funds in the appropriate accounts.

-h
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