I was on a Teams call with him sharing my really cool color coded spreadsheet of funds that I made years ago that shows taxable vs all the other funds. That was what prompted the comment about my asset allocation.There can be more than one acceptable answer. There is no optimal answer. Tax laws change, economic cycles happen, wars disrupt economies and lives. Perhaps he was not aware of your realized gains in taxable which might have been looked at in more detail before doing anything. Did he specifically say you should sell everything in taxable and pay capital gains taxes? You got a short intro session with him for free. You might be expecting a lot.
Muni bonds in taxable has been a cornerstone of high net worth personal finance used in California and New York for as long as there have been muni bonds and income taxes. If you drive by the mansions in San Marino or Hillsborough the people that owned those homes over the years have likely owned muni bonds. This forum is probably overly negative about state specific muni bonds (specific issues or muni bond funds).
At least he didn't recommend a separately managed account or direct indexing, that would be a worse offense IMHO than muni bonds.
It was mentioned that the recommended asset allocation was to have bonds in taxable, stocks in tax deferred in reference to my asset allocation. So my assumption is that he was implying that I should sell and switch but we didn't get much further than that because I wanted to know the thought processes behind that recommendation. We didn't get much beyond that and signed off the call.
Statistics: Posted by Crow Hunter — Fri Feb 23, 2024 3:56 pm — Replies 16 — Views 813
