What's in your after tax portfolio?

[Zero]

MM 5% (used as my cash holdings and for checking and savings)
VTI 60%
VEU 35%

I have a Fidelity Ultra Services Account so all my checking, CCs, ATM cards, and brokerage are in one place. No bank accounts at all.

Simple is best for me.

 

[Major Tom]

My taxable accounts consist entirely of VTSAX, with about 2-3 years worth of cash in a high interest bank savings account.

"High interest" is currently 1%, which is about as much as you can get in a regular savings account these days

The tax deferred accounts have bond funds and more equity funds.

 

[nun]

My VMMXX, VTSMX and VGTSX pre ER couch potato portfolio works very well in the accumulation stage. I just put after tax savings into equities and keep my portfolio at 50/50 by putting more into bonds in my tax deferred accounts.

However, should I adjust it when I ER. I'll probably hold 6 months rather than 2 months cash in the MM, but other than that I don't see much reason to change it. If I need cash in a bad market I'll just transfer some of my bonds to VTSMX in my tax deferred account and sell the same amount of VTSMX in after tax.

 

[Ronnieboy]

Just want to get verification on a theoretical retirement account.

If I have $1,000,000 in a Roth IRA (various funds/stocks) that was throwing off 4% in dividends yearly, would that total amount be tax free since I have it in a Roth?
Is there any situation where it wouldn't be tax free (if congress keeps the rules the same)?

 

[freebird5825]

Just want to get verification on a theoretical retirement account.

If I have $1,000,000 in a Roth IRA (various funds/stocks) that was throwing off 4% in dividends yearly, would that total amount be tax free since I have it in a Roth?
Is there any situation where it wouldn't be tax free (if congress keeps the rules the same)?

Look here...see Figure 2-1

Publication 590 (2010), Individual Retirement Arrangements (IRAs)

 

[Ronnieboy]

Look here...see Figure 2-1

Publication 590 (2010), Individual Retirement Arrangements (IRAs)

Thanks Freebird for the info.

From what I can tell, if I meet the age and time-frame requirements, then everything would be tax free. I need to focus on funding ROTH IRA 100%.

We make too much as a married couple to do direct contributions but we should be able to do tIRA and do immediate rollover.

 

[Chester_A._Riley]

Vanguard Total Market
Vanguard Life StratMod
Janus Contrarian
Vanguard Europe
Vanguard Pacific
I Bonds
Cash

 

[RetiredGypsy]

My after tax portfolio:

Vanguard:

Small-Cap Index
Mid-Cap Index
REIT
Emerging Markets Index

Plus Berkshire Hathaway

Vanguard ROTH:

Wellesley
S&P 500 Index

I wish I'd known more before getting out of the Navy, then I would have maxed out the IRA every year.

 

[steelyman]

I have in my after-tax portfolio: Vanguard STAR and Total Stock Market, Royce Premier and then about 14 or so individual stocks at a brokerage account.

 

[steelyman]

This is kind of related and may be of interest to people here. There is a finance professor at the University of Illinois who appears on a public radio program once a month to discuss things related to personal finance. He also maintains and updates a sample equity portfolio, which can be found here: The Custom Portfolio for Savvy Long-term Investors | Focus | Illinois Public Media | University of Illinois

The monthly programs are quite interesting (I think so, anyway) and are archived at the station's website. Searching for "personal finance" should bring up a list.

 

[yakers]

VT mod afl hnz wec syy pgn exc sph pey dvy mdt

 

[travelover]

I have in my after-tax portfolio: Vanguard STAR ........

STAR has a bond component. Wouldn't it be more tax efficient to just hold equities in the after tax and the bond portion in tax deferred?

 

[M Paquette]

Stocks/Bonds: 60/40
Stocks Domestic/Foreign: 70/30
Stocks Domestic Total Market/Small Value: 80/20
Bonds Treas/Corp/Inflation 25/25/50

60% stocks, 40% bonds

The stocks are 70% domestic, 30% international (ex US)
The domestic stocks are 80% total stock market, 20% small cap value (That is, I overweight small cap value. The fraction was too small to bother with for international.)

Bonds are split 50% TIPS and 50% intermediate term (in a fund with little in the way of mortgage-related instruments)

All multiplied out and assigned to accounts by tax efficiency, this gives me:

Tax Deferred account
20% Vanguard Intermediate Term Bond Fund

After-Tax account
20% Vanguard Inflation-protected Securities Fund
33.6% Vanguard Total Stock Market Fund
8.4% Vanguard Small-cap Value Fund
18% Vanguard FTSE All-World Ex-US Fund

 

[Marc]

I just have three ETF in after tax portfolio: IWM, QQQQ, and SPY. They throw off some dividends but the great majority are qualified dividends. The rest is in Fidelity Cash Reserves; I need to find and switch to one of those high yield savings accounts instead.

 

[kaneohe]

Thanks Freebird for the info.

From what I can tell, if I meet the age and time-frame requirements, then everything would be tax free. I need to focus on funding ROTH IRA 100%.

We make too much as a married couple to do direct contributions but we should be able to do tIRA and do immediate rollover.

If you put your funds in the Roth from Roth conversions, it's a little bit more complicated because every conversion has it's own 5 yr clock . However if you are only talking about taking out the 4% /yr. , most likely you'd be ok since the ordering rules considers the withdrawals to be contributions first,
then conversions (oldest first), and earnings last. So most likely, by the time you get to earnings, you will have aged out all the conversion clocks.

 

[kaneohe]

after tax portfolio is taxable unless i'm missing something. no that would not be a good idea. bonds, small cap and reits are best held in tax deferred or a roth because they are tax inefficient. equities that don't generate a lot of cap gains such as the vg total stock market index is an example of what to hold in a taxable account.

Not sure I understand what everyone is listing. OP's title is something like what's in your aftertax portfolio?

I thought there was taxable (normal stuff not in a formal retirement plan),
tax-deferred (like TIRAs, 401Ks) , & tax free (Roths). Since tax-deferred are sometimes called pre-tax, I had assumed after tax meant Roths.

 

[rescueme]

We have very little in our respective after-tax (e.g. Roth) portfolios, and doubt that we will touch it on an ongoing basis - if at all, and hate to manage it as we do for our TIRA's.

We kept it simple. For us? Pssst - Wellesley ...

 

[Marc]

Not sure I understand what everyone is listing. OP's title is something like what's in your aftertax portfolio?

I thought there was taxable (normal stuff not in a formal retirement plan),
tax-deferred (like TIRAs, 401Ks) , & tax free (Roths). Since tax-deferred are sometimes called pre-tax, I had assumed after tax meant Roths.

I took "after tax" to mean no tax deferred or tax free accounts; just investments in brokerage account earmarked for retirement.

Marc

 

[steelyman]

STAR has a bond component. Wouldn't it be more tax efficient to just hold equities in the after tax and the bond portion in tax deferred?

You are correct and make a good point. I've held STAR for quite a long time - one of my earliest forays into investing. I am in the process of selling my shares over time; they will not be replaced. But I do have two other holdings in a taxable brokerage account (Oakmark Equity and Income and Permanent Portfolio) that I think raise the same issue. I'll have to think about how to handle them, as I do like both funds.

 

[unclemick]

The leftover dregs of early ER not yet sold widows and orphans, DRIPs, dividend stocks or whatever label one chooses. Note that prior to 59 1/2 my taxable were a lot of dividend stocks and index funds rode in IRA and Roth.

utes - electric: con ed
- water: aqua america
- gas: national fuel gas
big oil: chevron and exxon
telephone: AT&T, Verizon
pharma: eli lilly, glaxo
food: JM smucker, flowers
REIT WRE, UDR,
Stonemore LLC
financial: JP morgan

Needless to say I also owned a lot of dogs since 1993 - bought, sold and erased from memory.

heh heh heh - well not really.