Tax

[PJ03]

Taxable Ted,
That’s me, well I'm now up to the chapter in the four pillars that identifies me and how I should invest, I must admit, getting through this book was not easy and I dare say that I will have to go back many times if I’m to make this stuff stick.
I have a question or two. Has anything changed since this book was written with respect to taxable accounts, in his book Bernstein recommends I stay out of value stocks and REITS (except if the REITS are in a VA) my thinking is that I will be retiring within 5 yrs, I’m 42, I want to be exposed to real estate, but the idea of tying that portion (About 15%) up until I’m 59 without penalty is not too appealing. Is there, dare I say “tax relief” for the taxable Ted’s out there to start some sort of a sheltered portfolio.

 

[unclemick]

Here's a tongue in cheek suggestion - impossible to follow - given the curse of male hormones:

Buy the appropriate Vanguard Tax Managed Fund for your sit rep (balanced??) and indulge your male hormones with a hobby: golf, fishing, kayaking, buying and remodeling RE, reading Bernstein, etc.

DCA into one good retirement fund - and then putz with your hobby money. I wasted thirty years with books, brokers, financial plans/planners, etc.

BUT! It was good clean fun - AND and like the post script in Ben Graham's Intelligent Investor - it only takes one stock.

Unlike Hemingway's Old Man And The Sea - I've never caught the 'one big fish' or Ben G's one great stock. Along with Monty Python - the quest continues - it's male and hormonal.

80-90% of my ER was funded by plunka plunka DCA into what amounted to 50/50 S&P Index/fixed income in 401k. I always contributed the max allowible.

This is not the only way - a few got here via RE and some with individual stocks.

More than one way to skin a cat.

heh heh heh

 

[Nords]

I wasted thirty years with books, brokers, financial plans/planners, etc.

No you didn't.

You confronted the testosterone poisoning head-on in your early years when you still had enough time to recover. Now you can stand up at Vanguard Diehard meetings and say "Hi, I'm UncleMick and I'm enamored of active investing in a focused equity portfolio."

I shudder to think what would happen if I was ER'd in my 60s, a lifelong index investor with an active & curious mind, and stumbled across anything written by Bill O'Neil. I'd rather pay my tuition at the U of Experience now.