davemck21
Confused about dryer sheets
Just wondering if anyone has any advice for investing in a taxable account. My wife and I have maxed out all tax advantaged accounts and began funding a taxable account several years ago. Our combined asset allocation is 28% US equity (VTI, IWV,VIG and IJS), 20% Taxable Bonds/Muni's (BND, TIP, PCY, MUB, HYD, PZA and FAGIX), 15% International (VEA, IDV and SCZ), 10% emerging markets (VWO, DGS), 17% Real Estate (VNQ, RWX) and 10% Commodities (IAU and DBC). All positions are in the appropriate accounts (i.e, Bonds, REITs and commodities in tax advataged and US/international equity in both tax advantaged and taxable, muni's taxable). Our problem is we are running out of room in the tax advantaged accounts to maintain our current AA. I have to keep some US/international in the tax advataged accounts for rebalancing purposes. I have done a couple of sector plays with XBI, PJP, PAGG, XHB and PBS (taxable account) but it is throwing my AA way off. We have a 2.875% mortage (14 years left) and no other debt. We have 529's for our kids that we continue to fund. We also have a emergency cash account with 10 months living expenses. My question is what to do with new money? Is it ever OK to invest tax inefficient investment like bonds, commodities (K-1, ugh) and REITs in a taxable account to maintain current AA? Would love to pay off the house but at 2.875 I can't justify it. I have been a DIY investor for about 3 years with any extreme distrust of financial adivsors due to 15 years of really bad advice and really high fees. I would rather take the money and head to Vegas than call an advisor again. Any suggestions would be appreciated.
Thanks.
Thanks.
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