Hi all,
Reviving this thread instead of beginning a new one, but I've got new questions about my portfolio due to a new avenue for tax-advantaged investing opening up for me. Basic info below, then the questions!
Emergency fund: Yes
Debt: ~$470K mortgage at 3.15%, $14K car payment at 5%
Tax Filing Status: Married Filing Jointly
(Wife and I invest separately, so the below are just my numbers)
Tax Rate: 22% Federal, ? % State
Income: $72K/year
State of Residence: IL
Age: 38
Asset allocation / Current Portfolio*:
90% stocks / 10% bonds
International allocation: 18% of stocks
Total portfolio is ~$240K
Taxable
9.8% Fidelity Total Stock (FSKAX)
18% Fidelity Total International Index (FTIHX)
Roth IRA
50.00% Fidelity 500 Index (FXAIX)
12.20% Fidelity Extended Market (FSMAX)
10.00% Fidelity Total Bond Index (FTBFX)
*with the help from some Bogleheads in years past (see up thread), my portfolio was arranged between the Roth and taxable to avoid potential wash sale risk.
_______________________________________________________________
Contributions
I invest ~14K per year, maxing out the Roth and putting the rest in the taxable
Questions:
Background:
- I am a small business owner (LLC, 5 members). We have no retirement benefits as a company; we're a small theater company and we just can't afford to offer it.
- We have recently decided to split our compensation 50/50 between W2 and LLC distributions for tax savings purposes. We were previously paid 100% W2. Because of this change, my tax accountant says I can now set up a SEP as "Sole Proprietor / Schedule C", and thus have a new tax-advantaged way of investing, which I'm thrilled with.
Questions:
- Given how my allocation is already split between two accounts, which are structured to avoid wash sale penalties, I'm unsure what to invest in in a new third account. Is there some way of transferring my taxable funds to this new SEP accounts without selling? How should I go about this? Rebalancing across three accounts sounds like a major pain.
- I won't be close to hitting the yearly contribution limit on the SEP. Should I just put *all* my contributions into the SEP from here on out?
Reviving this thread instead of beginning a new one, but I've got new questions about my portfolio due to a new avenue for tax-advantaged investing opening up for me. Basic info below, then the questions!
Emergency fund: Yes
Debt: ~$470K mortgage at 3.15%, $14K car payment at 5%
Tax Filing Status: Married Filing Jointly
(Wife and I invest separately, so the below are just my numbers)
Tax Rate: 22% Federal, ? % State
Income: $72K/year
State of Residence: IL
Age: 38
Asset allocation / Current Portfolio*:
90% stocks / 10% bonds
International allocation: 18% of stocks
Total portfolio is ~$240K
Taxable
9.8% Fidelity Total Stock (FSKAX)
18% Fidelity Total International Index (FTIHX)
Roth IRA
50.00% Fidelity 500 Index (FXAIX)
12.20% Fidelity Extended Market (FSMAX)
10.00% Fidelity Total Bond Index (FTBFX)
*with the help from some Bogleheads in years past (see up thread), my portfolio was arranged between the Roth and taxable to avoid potential wash sale risk.
_______________________________________________________________
Contributions
I invest ~14K per year, maxing out the Roth and putting the rest in the taxable
Questions:
Background:
- I am a small business owner (LLC, 5 members). We have no retirement benefits as a company; we're a small theater company and we just can't afford to offer it.
- We have recently decided to split our compensation 50/50 between W2 and LLC distributions for tax savings purposes. We were previously paid 100% W2. Because of this change, my tax accountant says I can now set up a SEP as "Sole Proprietor / Schedule C", and thus have a new tax-advantaged way of investing, which I'm thrilled with.
Questions:
- Given how my allocation is already split between two accounts, which are structured to avoid wash sale penalties, I'm unsure what to invest in in a new third account. Is there some way of transferring my taxable funds to this new SEP accounts without selling? How should I go about this? Rebalancing across three accounts sounds like a major pain.
- I won't be close to hitting the yearly contribution limit on the SEP. Should I just put *all* my contributions into the SEP from here on out?
Statistics: Posted by irl — Mon Sep 02, 2024 4:16 pm — Replies 25 — Views 3436