Pre-Retirement Investments.

[corn18]

Start here: http://www.bogleheads.org/wiki/Bogle...g_start-up_kit

First question you need to answer - is this money for retirement? Just because it's not in an IRA/401K doesn't mean it's not for retirement.

Please go ^^^there and see if the Boglehead thing fits your style. It has made my investing stress free. I avoided the site for a long while because I thought it was a cult. Turns out, it's just good old common sense just like everyone here teaches.

[feh]

We want to save more money for retirement but have maxed our options.

Ok, so you've answered my question above.

You are simply ready start investing in a taxable account, since you have reached the annual limits of tax-deferred accounts. The bogleheads site will give you the information you desire.

One other option you might have is an HSA. Some folks recommend putting money there before a taxable account.

If you want to retire early, having money in taxable accounts will give you quite a bit of flexibility.

[Jluke]

Generally speaking though, I lean towards tax-efficient investments with my taxable money. Any interest, dividend, and short-term sells are subject to income tax, and I prefer to avoid them whenever possible.

Can someone provide examples of tax-efficient investments for taxable account - would BRK.B be one since it doesn't pay any dividends, capital gains, etc?

[autoxer]

Thank you. I am looking for tax efficiency since I do not need the income at this time.

So...

Step 1: Figure out asset allocation goal.
Step 2: Find funds to fill this asset allocation. Ensure funds are tax efficient (No or low dividends).

What should I be looking for?

I use a very similar asset allocation in my brokerage account that I use in my 401k & IRA. I don't see any benefit in making it more complicated than that. I did choose more tax efficient funds for the taxable account, basically an S&P index fund, because the low turnover limits the tax hit.

Here is a lot of information on tax efficiency: http://www.bogleheads.org/wiki/Princ...fund_placement

[feh]

Here is a lot of information on tax efficiency: http://www.bogleheads.org/wiki/Princ...fund_placement

I believe that page will tell you to treat your entire portfolio (taxable and tax-advantaged accounts) as a whole. In other words, don't be concerned about the asset allocation in each account; what matters is the asset allocation across all your accounts.

Since you want tax efficient holdings in your taxable account, that likely means your taxable account will be 100% equities (ie. an S&P 500 fund, or similar).

For example, my portfolio's allocation is about 63/37 (equities/fixed income). Our taxable account is about 53% of our holdings, and is all equities.

[snafu]

Kudos, take a bow for arranging to fully fund all available retirement limits. I presume you use your CCs for cash back or points plus easiest record of major purchases and mention it's quite safe and efficient to pay balances electronically two business days before designated due date. Have you followed CCF's system of seeking CC cash promotions for fun and profit? [blog section of SA]

How will you fund your new, fun, non retirement-linked investment portfolio? It's exciting to sweep end of month leftover sums from chequing account and base new month using the zero based budget technique. Add in unanticipated sums for sale savings and even income tax 'saving' that result from various retirement plans. I'm now considering the CC cash back since it pays out annually.

Having been over run with visitors this month, I've not had time to spend other than fresh produce and anticipate taking a hit on the next water bill.

[mrpaseo]

Kudos, take a bow for arranging to fully fund all available retirement limits. I presume you use your CCs for cash back or points plus easiest record of major purchases and mention it's quite safe and efficient to pay balances electronically two business days before designated due date. Have you followed CCF's system of seeking CC cash promotions for fun and profit? [blog section of SA]

How will you fund your new, fun, non retirement-linked investment portfolio? It's exciting to sweep end of month leftover sums from chequing account and base new month using the zero based budget technique. Add in unanticipated sums for sale savings and even income tax 'saving' that result from various retirement plans. I'm now considering the CC cash back since it pays out annually.

Having been over run with visitors this month, I've not had time to spend other than fresh produce and anticipate taking a hit on the next water bill.

We use one CC (Wife, Daughter and I) and there is some cash back at the end of the year. I believe we received just over $400 last year. We use the CC to be able to track spending, with this, we use it for everything.

What is CCF's system?

We currently live so far below our means, we have a few thousand available to save monthly. If we do not invest it, we tend to spend it.

What's this CCF system I am curious.