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vagabond
Follower ○○○

Suggestions for Taxable account

Hello

I have the following funds in my taxable account

funds

ARTGX

FMIHX

MAPIX

TAIFX

CEF munis:

PMX

PTY

ETF

VSS 

I am looking at streamlining my account. Looking for distributions.. Tax is 15% bracket and I still had some losses so tax efficient is not an issue but still would like to have  some tax advantages in brokerage acct.

Still have about 14K in cash. 

Can you please critique my portfolio? 

thanks. 

Sophia 

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19 Replies
vagabond
Follower ○○○

Re: Suggestions for Taxable account

Bumping . No suggestions?  

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OpenMind
Explorer ○○

Re: Suggestions for Taxable account

To get replies, might want to provide a little more information such as percentage held in each investment, age, goals, how long before you need the money, what you need the money for etc.  

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vagabond
Follower ○○○

Re: Suggestions for Taxable account

Thank you @OpenMind 

here is information on my taxable account. You see where I am losing money. 

Total $65K.

Money are in fidelity. 

I also have IRA but that's will be another review. 

I am 64 and still working on my own travel business. I do not plan to quit when I am 65.  I produce income from my business to cover most expenses, however it depends on certain geo, economic and political situation and usually in the end of the year I use money from this taxable account to pay real estate tax and sometime to feed my personal account in local bank. 

In next year when I will be 65, my medicare will start and my insurance/medical costs will be reduced.  So far no major health issues knock on wood. Own my house. 

It used to be $100K but it dwindled to $65K. The most money I lost last december when it was market drop. Also in the end of the year there are capital gains and I was losing money. I am thinking to move most of it to CEF and ETF's . 

I would like to have 7% distributions but it is too much to ask :-) . So stable income, even less, would be good. 

@r48 used to give great advice. But I appreciate everyone's input! 

SymbolDescriptionQuantityCurrent ValueTotal Gain/Loss DollarTotal Gain/Loss Percent
FCASH**Cash14767.13$14,767.13n/an/a
ARTGXARTISAN GLOBAL VALUE FD INVT SHARES446.8$7,399.00$1,292.7621.17%
FMIHXFMI LARGE CAP FUND673.137$13,328.11$865.646.95%
MAPIXMATTHEWS ASIA DIVIDEND FUND366.378$5,946.31($245.77)-3.97%
PMXPIMCO MUN INCOME FD III500$6,205.00$508.458.93%
PTYPIMCO CORPORATE & INCOME OPPOR300$5,640.00$817.0516.94%
TAIFXAMERICAN FUNDS TAX ADV GRWTH & INCM F1762.195$10,464.93$464.944.65%
VSSVANGUARD INTL EQUITY INDEX FDSFTSE ALL WORLD EX USA SMALL CA13$1,339.26($249.02)-15.68%
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vagabond
Follower ○○○

Re: Suggestions for Taxable account

Also forgot to tell I am in 15% tax bracket. 

 

 

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chang
Valued Contributor

Re: Suggestions for Taxable account

All your equity exposure is “value”, which probably hurt you during the last ten years. On the other hand, I’m reluctant to suggest you move from value to growth now. It may be just the wrong time to do that. Maybe, however, shift a little to “blend”?

You have exposures that I would consider risky for (a) your age, and (b) the small size of your portfolio. I don’t think you need CEFs, an Asia fund or an international small cap fund.

Why do you have municipal bonds (TAIFX) in a 15% tax bracket??

I would probably move everything into an index fund(s) with some target allocation to the US total market, some foreign and some bonds.

If you’re determined to own fashionable managed funds, how about 35% DODBX, 20% VPMCX, 15% FMIJX and 30% PDIIX?
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vagabond
Follower ○○○

Re: Suggestions for Taxable account

Thank you @chang 

This portfolio is about 12 years. MAPIX was for many years and I went from losing money to gaining money and now it seems again going down.. I am thinking about selling it. 

TAIFX I added few years ago to diversify, since it has munis plus equities. It gave me 4% but not more.

Index funds I am looking at it but at the end of the year due to the capital gains the value drops. 

I tried also small caps and they did not do well.

I will look at your suggestion of funds. 

Thank you.

Sophia 

 

 

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chang
Valued Contributor

Re: Suggestions for Taxable account

Sophia: I hold a lot of MAPIX. Who knows, but I suspect the time to sell it was last year, not now. I don’t plan to sell mine. Asia has been hurt by trade-war talk, and for all I know it could be the buying opportunity of the century.

Having said that, I still question it in your portfolio per my original comments.

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vagabond
Follower ○○○

Re: Suggestions for Taxable account

Thank you Chang.

I might just sell it in taxable and buy in IRA.

 

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chang
Valued Contributor

Re: Suggestions for Taxable account

Sophia, remember that you pay foreign taxes on foreign holdings. In a taxable account these are itemized on your 1099B and can be deducted; in a tax deferred account (IRA) they cannot. Hence, I try to hold foreign stocks in my taxable accounts.
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vagabond
Follower ○○○

Re: Suggestions for Taxable account

Ah I see now it makes sense why years ago I bought it in taxable per reccomendation of my CPA.  Thanks!

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yogibearbull
Valued Contributor

Re: Suggestions for Taxable account [Foreign Tax Credit vs Deduction]

If one doesn't itemize, foreign tax credit can still be taken via Form 1116.

Rule is that in any year, one can use foreign tax credit [Form 1116] or deduction [itemized] for all foreign taxes, i.e. one cannot split them.

YBB
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retiredat48
Participant ○○○

Re: Suggestions for Taxable account


@vagabond wrote:

 

 

@r48 used to give great advice. But I appreciate everyone's input! 

----------------------------------------------------------------------------------

 

R48 reply:  Let record show that Vagabond (who has had previous portfolio reviews) contacted me by private message, and I'm corresponding directly with her re portfolio guidance.

R48

 

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vagabond
Follower ○○○

Re: Suggestions for Taxable account

Thank you!
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NoFriends1
Explorer ○○○

Re: Suggestions for Taxable account

I agree w/the suggestion moving somewhat into the ' Blend ' style box, away from just possessing Large Value. I f you do not move into the Index realm, look at  PRDGX, an excellent lower Volatile fund, or an ETF such as USMV. These will give you some ' OOMP ', over pure value, but still w/a lower risk profile.

Good luck w/your choices.

Signed,

NoFriends1

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vagabond
Follower ○○○

Re: Suggestions for Taxable account

@retiredat48  - and others - I created a portfolio under Vagabond in M* . I am not a premium member. 

Any idea how to attach portfolio to my id? 

thanks

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vagabond
Follower ○○○

Re: Suggestions for Taxable account

@retiredat48  - and others - I created a portfolio under Vagabond in M* . I am not a premium member. 

Any idea how to attach portfolio to my id? 

thanks

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yogibearbull
Valued Contributor

Re: Suggestions for Taxable account [Portfolio Sharing]

@vagabond , new site doesn't have portfolio sharing. You may use the old site until the feature is turned off there too.   http://socialize.morningstar.com/NewSocialize/user/Profile.aspx?q=848C66EC5AEAB576

YBB
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chick
Follower ○○○

Re: Suggestions for Taxable account [Portfolio Sharing]

Can you help me understand how to check available information on how well a fund manages for the lowest taxable return and how to understand the tax return info?

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borosp Employee
Employee

Re: Suggestions for Taxable account [Portfolio Sharing]

I see you have some closed end funds in your taxable (brokerage account).  This is good article to written on seeking alpha regarding Tax-Efficient CEFs.

https://seekingalpha.com/article/4304225-best-tax-efficient-cefs-q4-update

 

If your looking for more predictable income from dividend look for individual stocks that have a long history of paying a distribution and growing that distribution over time.  There is a site and spreadsheet updated monthly called the dividend champions which contain all the individual stocks that increased there dividend over time from Champions (25 or More Consecutive Years of Dividend Increases), Contenders (increased their dividend for at least the past 10 - 24 years), Challengers (increased past 5 - 9 years).

https://www.dripinvesting.org/Tools/Tools.asp

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