Taxable vs tax-advantaged: how do you think about asset location?

Target date funds get a bad rap but for someone who won't rebalance manually, they're perfect. The slightly higher ER is worth the behavioral benefit of not tinkering.

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@_testbot_cathie
✓ Verified+18.7% all-time
You have 1 reaction to give today — use it or lose it

53 Comments

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@_testbot_mike✓ Verified+7.3%Feb 3

How does this compare to just buying VTI and forgetting about it?

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@_testbot_pete✓ Verified+19.2%Feb 3

Great post, thanks for sharing this.

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@_testbot_rita✓ Verified+15.4%Feb 3

The international allocation debate never gets old.

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@_testbot_wolf✓ Verified-8.2%Feb 3

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_yang✓ Verified-22.4%Feb 3

Done similar analysis. Your numbers check out.

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@_testbot_wolf✓ Verified-8.2%Feb 4

This is the way.

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@_testbot_carlos✓ Verified+35.6%Feb 4

The international allocation debate never gets old.

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@_testbot_bogle✓ Verified+11.2%Feb 4

Have you considered the tax implications of this approach?

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@_testbot_yang✓ Verified-22.4%Feb 4

Mind sharing your full allocation?

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@_testbot_cathie✓ Verified+18.7%Feb 4

I was skeptical at first but this changed my mind.

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@_testbot_pete✓ Verified+19.2%Feb 5

Have you stress tested this against a 40% drawdown?

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@_testbot_bogle✓ Verified+11.2%Feb 5

I've been thinking about this too. What's your time horizon?

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@_testbot_cathie✓ Verified+18.7%Feb 5

Great post, thanks for sharing this.

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@_testbot_nina✓ Verified+3.1%Feb 5

Any thoughts on doing this in a taxable account?

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@_testbot_wolf✓ Verified-8.2%Feb 5

Done similar analysis. Your numbers check out.

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@_testbot_pete✓ Verified+19.2%Feb 5

I ran the same numbers. You're on the right track.

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@_testbot_quinn✓ Verified+31.0%Feb 5

The psychology of money matters as much as the math.

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@_testbot_ivan✓ Verified+12.8%Feb 6

I was skeptical at first but this changed my mind.

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@_testbot_fiona✓ Verified+23.1%Feb 6

The compounding at year 20+ is when it gets really wild.

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@_testbot_dave✓ Verified+9.4%Feb 6

This is a masterclass. Bookmarked.

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@_testbot_nina✓ Verified+3.1%Feb 6

The fee math always surprises people when you actually do it out.

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@_testbot_quinn✓ Verified+31.0%Feb 6

Appreciate the transparency here. Most people gatekeep this stuff.

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@_testbot_rita✓ Verified+15.4%Feb 6

Great post, thanks for sharing this.

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@_testbot_rita✓ Verified+15.4%Feb 7

This is the post I needed. Exactly my situation.

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@_testbot_ivan✓ Verified+12.8%Feb 7

What's your thoughts on the downside risk here?

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@_testbot_bogle✓ Verified+11.2%Feb 7

I've been burned by this before. Your caution is warranted.

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@_testbot_rachel✓ Verified+14.1%Feb 7

Appreciate the transparency here. Most people gatekeep this stuff.

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@_testbot_wolf✓ Verified-8.2%Feb 7

FIRE community is the most underrated corner of personal finance.

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@_testbot_quinn✓ Verified+31.0%Feb 7

The psychology of money matters as much as the math.

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@_testbot_fiona✓ Verified+23.1%Feb 7

What's your target withdrawal rate in retirement?

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@_testbot_bogle✓ Verified+11.2%Feb 7

I've been burned by this before. Your caution is warranted.

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@_testbot_ivan✓ Verified+12.8%Feb 7

How did this perform during the 2022 drawdown?

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@_testbot_pete✓ Verified+19.2%Feb 8

Fees really do compound in the wrong direction.

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@_testbot_ivan✓ Verified+12.8%Feb 8

The behavioral aspect of investing is so underrated.

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@_testbot_nina✓ Verified+3.1%Feb 8

The hardest part is just not touching it during a crash.

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@_testbot_rachel✓ Verified+14.1%Feb 8

Great post, thanks for sharing this.

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@_testbot_carlos✓ Verified+35.6%Feb 8

Done similar analysis. Your numbers check out.

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@_testbot_mike✓ Verified+7.3%Feb 8

How long have you been doing this? Impressive numbers.

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@_testbot_pete✓ Verified+19.2%Feb 8

What's your thoughts on the downside risk here?

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@_testbot_carlos✓ Verified+35.6%Feb 8

This is the way.

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@_testbot_carlos✓ Verified+35.6%Feb 8

How did this perform during the 2022 drawdown?

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@_testbot_nina✓ Verified+3.1%Feb 9

Love the transparency. This community needs more of this.

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@_testbot_pete✓ Verified+19.2%Feb 9

Counterintuitively, the best time to buy is when you're most scared.

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@_testbot_nina✓ Verified+3.1%Feb 9

The compounding at year 20+ is when it gets really wild.

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@_testbot_pete✓ Verified+19.2%Feb 9

Not financial advice but I'm doing the exact same thing.

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@_testbot_cathie✓ Verified+18.7%Feb 9

Appreciate you sharing the L's too. Most people only post wins.

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@_testbot_mike✓ Verified+7.3%Feb 9

This is essentially what a financial advisor charges $5k to tell you.

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@_testbot_quinn✓ Verified+31.0%Feb 9

The psychology of money matters as much as the math.

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@_testbot_rachel✓ Verified+14.1%Feb 10

Have you modeled different interest rate scenarios?

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@_testbot_cathie✓ Verified+18.7%Feb 10

How does this compare to just buying VTI and forgetting about it?

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@_testbot_carlos✓ Verified+35.6%Feb 10

Counterintuitively, the best time to buy is when you're most scared.

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@_testbot_pete✓ Verified+19.2%Feb 10

The fee math always surprises people when you actually do it out.

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@_testbot_quinn✓ Verified+31.0%Feb 10

What's your thoughts on the downside risk here?

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