With after-tax asset allocation, one thing I didn't mention is that it could cause you to "rebalance" when your expected future tax liabilities change. This could happen when tax laws change, your marital status changes, or financial plans change in way that affects your tax liability. Another reason I'm not a fan of after-tax asset allocation.
@thoryan3057
Жыл бұрын
Another thing to consider, at least from the perspective of Mark Zoril's podcast on dividing allocations by percentages of 20 increments (episode 8), is that the overall risk and reward profile between doing a before-tax asset allocation and an after-tax asset allocation is probably indistinguishable anyway.
@Omar-et7sb
Жыл бұрын
Great as always! At a macro level, I track my overall AA in a spreadsheet to broadly know what my US, EX-US and Fixed Income slices look like. That said, I treat my Tax-Deffered, Roth and Taxable accounts as "individual" portfolios. That's because each one has a different objective AND a different time horizon.
@happytravels2480
Жыл бұрын
We have 7 different accounts. I allocate account by account. I no longer worry about having tax inefficient funds in our taxable account. We use that account as an emergency fund or an early retirement fund. I want that fund to produce income. Income we may need to access before our official retirement age or if one of us were to lose a job. These are factors never considered when considering investing in a taxable account. Everyones situation is different, so I don’t think it’s always a bad idea to have Reits, Bonds, MLP’s, BDC’s, etc, in a taxable account. I don’t care that I’m getting taxed a bit more. I have 6 other funds for growth. I want our taxable account to produce income if I need it. Our taxable can now cover our mortgage payment if need be, and that’s a great feeling.
@alphamale2363
Жыл бұрын
With investing, don't let the perfect be the enemy of the good. Glad I had never heard of after tax asset allocation.
@davidrogers0717
Жыл бұрын
Thanks Rob for this video. We too have multiple accounts (401(k), HSA, Roth, ..ect) and it can get crazy trying to manage it. I do use Personal Capital and that helps a lot!
@thoryan3057
Жыл бұрын
Currently, I do not own any bonds. For now, I plan to keep the asset allocation the same across all accounts (80% U.S. Equity and 20% International Equity). When I do start to include bonds a decade from now or later, I'm thinking of keeping the same International Equity allocation across all accounts so that I have *some* indicator of knowing when my asset allocation is out of line at least from the perspective of International Equity. I'll have more U.S. Equity in my Roth and have more Bonds in my traditional accounts.
@philruehlen
Жыл бұрын
Another great video Rob. I have been using your spreadsheet for 6+ months. Great tool!
@02brentmurphy02
Жыл бұрын
Thanks Rob, another informative video. I'll look over your spreadsheet to make sure I'm on the right track.
@joecocklin8596
Жыл бұрын
I'm 62 and have never been able to start a Roth IRA. Should I do the conversion or not? It seems like a lot of work for still having to pay taxes now vs. a few years from now. I can't seem to find a video from you on that topic. Anyways, thanks for all you do. It's very informative.
@rob_berger
Жыл бұрын
The conversion itself is very easy. The hard part, at least sometimes, is figuring out if a conversion makes sense from a tax perspective.
@JosephDickson
Жыл бұрын
My first step is to rollover and or merge my traditional IRA accounts. Keeping my number of separate accounts down minimum. Ideally one for each type.
@CalKidWilly
Жыл бұрын
Thanks Rob! Helpful. I appreciate your focus on practical, real-world issues in your topic choices, such as this one. I've used your allocation spreadsheet for years and I agree it is one of the best tools for managing a swath of different accounts. - Bill
@tab_nebraska235
Жыл бұрын
Very interesting, I hadn't ever thought of After-Tax Asset Allocation. Thanks Rob. Happy Thanksgiving
@stephtraveler7378
9 ай бұрын
great content and tips. I remember the threats of Schwab going belly up last summer or the Metlife annuity failures in the 1990s.... I actually use more than one broker... yeah, not as simple, but a little insurance.
@supersteve8305
Жыл бұрын
It all can get a bit overwhelming if you allow it to. The only thing I really try to do, is keep any REITS or REIT ETF's in my Roth account (for tax reasons).
@ksgtokgo
Жыл бұрын
Good info. After-tax allocation always sounded like a lot of work based on a big guess. I've never been inclined to try it. Now I am sure. (I checked to see if my play back speed was turned up. It wasn't. Hmm.)
@noveltyrobot
Жыл бұрын
Love you Rob, or should I say... "The Professor"
@kw7292
Жыл бұрын
Timely! Thank you for what you do.
@newbeginnings9457
Жыл бұрын
I have 3 Accounts! 1 Roth not contributing $700 1 time, 2 Roth contributing $200 month, 3 Regular IRA $100 month and largest account! Everything is low cost including Zero cost acct! It’s tough to keep track because I also try to buy Crypto! I need to simplify!
@MichaelToub
6 ай бұрын
Great Video!
@chriswiltshire613
11 ай бұрын
In terms of rebalancing a taxable account wouldn't it make more sense to just add assets to the 'losers' instead of creating a taxable event by selling the 'winners' to fund the 'losers'?? Assuming you are committed to that allocation..
@HB-yq8gy
Жыл бұрын
What happens if you decide to do some Roth conversions then the market stays flat or goes Japan sytle? Maybe Trumps Tax 2026 sunset never happens? Thanks, Rob. I got to say that Personal Capital makes it easy to track all accounts as one portfolio. Before it was impossible.
@vandematram8205
Жыл бұрын
Thank you Rob.
@mehawinct
Жыл бұрын
@Rob Berger seems to have uploaded the video sped up, somehow... You can do Custom playback speed, .85 seems to be the closest to Rob's normal speaking cadence.
@polymath5119
Жыл бұрын
We treat all accounts as one portfolio and use a modified version of the Rob Berger fund tracking spreadsheet to manage them and pre-test allocation changes. The Google ticker references all had to be removed after Google started terminating their feeds.
@okrajoe
Жыл бұрын
Now I don't feel so bad for having funds scattered across 4-5 retirement accounts!?!
@bmichele83
13 күн бұрын
Is it just me or did my guy crush a case of red bulls before making this video? Talking 100 mph..
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