Thank you for your well thought out reply. I guess in the issue of a wash sale, I would have to plan ahead 60 days accordingly, ie not make any purchases for 60 days, but indeed you are correct that juts avoided indentical funds all together would be the way to go.6) this sounds like very good advice. I did get into purchasing I bonds during the pandemic but I have since sold them. I will have to look back into what you are suggesting.
Edited to add:The reason is wash sale rules. If ever in the future you sell an investment in taxable account for a loss, if you have the same investments in an IRA, you could be subject to wash sales rules. The observation period is 30 days into the past and 30 days into the future from the date you sell something in taxable for a loss. You may certainly restrain yourself from buying the same fund for 30 days into the future, but how will you be able to change the past? If a dividend reinvestment occurred in the past 30 days in the Roth IRA for example, your loss is also permanently disallowed, since there is no concept of gain or loss in a Roth account.3) Same as 2. I agree the best move is to move out the individual stocks here and put into an index fund. so my question here would be how come I wouldn't use the same investment funds I have in the M1 brokerage? ie 60% VOOG 15% AVUV 10% VBR and 15% VXUS
The easiest step to take, is to simply NOT have identical investments between taxable brokerage account and Roth account, and maintain that principle forever.
One of my biggest questions with allocation is what percentage to invest in international as it has performed poorly in comparison to US stocks. Obviously can't predict the future but I lean towards US market. A lot of these roboadivsing services lean heavily into international stocks. It is one reason I stopped using the Betterment service years ago. I currently have elected 15% but I even feel that may be too high. any thoughts?
Statistics: Posted by Investing4MyFamily — Thu Jan 11, 2024 5:32 am — Replies 12 — Views 1077