"s o" <jou...@yahoo.com> wrote in message

news:1184865986.994278.115580@57g2000hsv.googlegroups.com...



hi all,

I want to add a big-cap balance fund to my portfolio(monthly auto.
investment), I'm looking at Oakmark's oakbx, Fidelity's fbalx or
vanguard's wellington fund. I can do this either thru my Roth IRA or
401k(thru Charles Schwab's Opensource). My questions is

1) is it more advantageous to do this thru my IRA or 401k? My
investment horizon is about 15 to 20 yrs.

2) I believe shouldn't do this thru my taxable acct which should be
reserved for my most tax-efficient funds (i.e., index funds).

3) another question is what is going to happen to the dividens or
interest income from the balance fund? are they automatically
reinvested or do I have to reinvest them myself?

thanks in advance.

s o

15 - 20 yrs? Is that during your retirement? How old are you now?

hi all,

I want to add a big-cap balance fund to my portfolio(monthly auto.
investment), I'm looking at Oakmark's oakbx, Fidelity's fbalx or
vanguard's wellington fund. I can do this either thru my Roth IRA or
401k(thru Charles Schwab's Opensource). My questions is

1) is it more advantageous to do this thru my IRA or 401k? My
investment horizon is about 15 to 20 yrs.

2) I believe shouldn't do this thru my taxable acct which should be
reserved for my most tax-efficient funds (i.e., index funds).

3) another question is what is going to happen to the dividens or
interest income from the balance fund? are they automatically
reinvested or do I have to reinvest them myself?

thanks in advance.

s o

1) is it more advantageous to do this thru my IRA or 401k? My
investment horizon is about 15 to 20 yrs.

hi all,

I want to add a big-cap balance fund to my portfolio(monthly auto.
investment), I'm looking at Oakmark's oakbx, Fidelity's fbalx or
vanguard's wellington fund. I can do this either thru my Roth IRA or
401k(thru Charles Schwab's Opensource). My questions is


1) is it more advantageous to do this thru my IRA or 401k? My
investment horizon is about 15 to 20 yrs.

2) I believe shouldn't do this thru my taxable acct which should be
reserved for my most tax-efficient funds (i.e., index funds).

3) another question is what is going to happen to the dividens or
interest income from the balance fund? are they automatically
reinvested or do I have to reinvest them myself?

Usually, a 401k contribution will reduce your taxable income. A Roth
contribution will not. If you need the deduction go through the 401k, if not
do the Roth. Otherwise there is no difference in how the fund you pick will
perform.

On Jul 20, 11:28 am, "Ed" <fri...@fishinthe.net> wrote:

Usually, a 401k contribution will reduce your taxable income. A Roth
contribution will not. If you need the deduction go through the 401k, if
not
do the Roth. Otherwise there is no difference in how the fund you pick
will
perform.

Unless of course the OP is talking about reinvesting money that is
already in the 401(k) in which case you will get no additional
deduction.

Even if referring to "new money", it may not be wisest to take the
deduction now.

To claim the deduction now while you are in a low tax
bracket, only to have to later pay ordinary income tax when you are in
a high tax bracket is leaving money on the table.

In that case the
Roth would be best. It largely depends on current and future tax
bracket assumptions (and how confident are we of future tax
brackets???) Simply put: Would you rather pay tax on the seed, or the
harvest?

To further confound things, if this is new money there may be an
employer match in the 401(k) that needs to be taken into
consideration. Employer matches are hard to beat.

OP, we gotta have more info to give you accurate, objective advice.

Gee, I thought he was talking about adding a new fund:
"I want to add a big-cap balance fund to my portfolio(monthly auto.
investment), I'm looking at Oakmark's oakbx, Fidelity's fbalx or
vanguard's wellington fund. I can do this either thru my Roth IRA or
401k(thru Charles Schwab's Opensource)."

Am I the asshole or is it you?

Even if referring to "new money", it may not be wisest to take the
deduction now.

It seems to me that would be in individual preference.

To claim the deduction now while you are in a low tax
bracket, only to have to later pay ordinary income tax when you are in
a high tax bracket is leaving money on the table.

Is he in a low tax bracket? I missed that part.

In that case the
Roth would be best. It largely depends on current and future tax
bracket assumptions (and how confident are we of future tax
brackets???) Simply put: Would you rather pay tax on the seed, or the
harvest?

Simply put, you are an idiot. Did you miss this part:
"Usually, a 401k contribution will reduce your taxable income. A Roth
contribution will not. If you need the deduction go through the 401k, if not
do the Roth."

To further confound things, if this is new money there may be an
employer match in the 401(k) that needs to be taken into
consideration. Employer matches are hard to beat.

He has a 401k, I hope he's getting the maximum benefit from the match
already. We can't know for sure though.

More info is always helpful. For all the years I've been visiting this group
I'm starting to wonder why I bother. My objective was to help people,
especially those just starting out. People are generally to stupid to help
themselves and then there are people like you. A moron.

I'm already maxing out my 401k to get employer 50% match, maxing out
my Roth and still have some savings left each month for investment.
My 401k has very poor fund selections. Going forward (not
reallocating), I want to add a balanced fund to my portfolio, I can
buy it thru either a)401k (thru Charles Schwab opensource); b)Roth IRA
or c)my taxable brokerage acct. I'm thinking I should invest in index
funds in my taxable acct because they're tax efficient so that leaves
me options a and b. I was wondering if it's more advantageous to do
one over the other?

To the OP, repost this topic on misc.invest.financial-plan you'll get
alot more help and alot less flamers. That group is moderated and the
mods don't put up with people like Ed over there.



On Jul 20, 2:18 pm, "Ed" <fri...@fishinthe.net> wrote:

Gee, I thought he was talking about adding a new fund:
"I want to add a big-cap balance fund to my portfolio(monthly auto.
investment), I'm looking at Oakmark's oakbx, Fidelity's fbalx or
vanguard's wellington fund. I can do this either thru my Roth IRA or
401k(thru Charles Schwab's Opensource)."

Sorry. By "monthly auto invest" he could have meant additional dollars
going in or a dollar cost averaging type of rebalance out of an
existing fund. I was simply asking the OP.

Am I the asshole or is it you?

I didn't think anybody was, but if I had to choose, I'll pick you I
guess. "Asshole" is not associated with knowledge or correctness but
personality and attitude.

Even if referring to "new money", it may not be wisest to take the
deduction now.

It seems to me that would be in individual preference.

That's why I used the word "may". It implies that its a possibilty not
a certainty.

To claim the deduction now while you are in a low tax
bracket, only to have to later pay ordinary income tax when you are in
a high tax bracket is leaving money on the table.

Is he in a low tax bracket? I missed that part.

Is he in a high tax bracket? I missed that part. You don't know and
neither do I. If he read your post without any clarification or
further details and acted on it, there is a chance he may have done
exactly the wrong thing. There's also a chance he would do exactly the
right thing.


In that case the
Roth would be best. It largely depends on current and future tax
bracket assumptions (and how confident are we of future tax
brackets???) Simply put: Would you rather pay tax on the seed, or the
harvest?

Simply put, you are an idiot. Did you miss this part:
"Usually, a 401k contribution will reduce your taxable income. A Roth
contribution will not. If you need the deduction go through the 401k, if
not
do the Roth."

No, I didn't miss it and I didn't dispute it. I was showing that under
the right circumstances there are other, possibly better, options. You
act like I said "Ed's definitely wrong".

To further confound things, if this is new money there may be an
employer match in the 401(k) that needs to be taken into
consideration. Employer matches are hard to beat.

He has a 401k, I hope he's getting the maximum benefit from the match
already. We can't know for sure though.

Right, "we can't know for sure, thats why I am asking. You assumed it.

More info is always helpful. For all the years I've been visiting this
group
I'm starting to wonder why I bother. My objective was to help people,
especially those just starting out. People are generally to stupid to
help
themselves and then there are people like you. A moron.

Why do you bother? The OPs biggest danger are "helpers" like you. You
gave a straightforward, direct answer that depends upon alot of
assumptions. Assumptions that would not have been necessary if you had
simply asked for more details first. Assumptions that, if not
accurate, could get the OP into a mess. Perhaps your advice is perfect
for him. Perhaps its terrible. Giving advice without knowing all the
facts is dangerous. You assumed that everything about this guy was
status quo and there are absolutely no unknown details that may make
his situation unique.

What if his employer doesn't offer a company match and the 401(k) fees
are outrageous? What if he needs the money before retirement? What if
he plans on retiring early? What if he is currently in the lowest tax
bracket now and is almost positive he'll end up in the highest
(inheritance, job salary, etc, etc)? What if he is already maxed his
401(k) contribution (or Roth) and isn't aware of the limits? You
assumed that everything about this guy was status quo and there are
absolutely unique details that may affect his decision now.

s o,

Ed Zollars, a very established and well respected CPA once said the
following:

"...I get suspicious of an "expert" in any field that has the answer
before
finding out any information about what is unique about my problem.
By
that way, that includes dismissing options out of hand as well as
having ready to go solutions."

Please realize that this is exactly what I was trying to prevent from
happening here.

Good luck.

sorry for all the confusion, here's detail info.

I'm already maxing out my 401k to get employer 50% match, maxing out
my Roth and still have some savings left each month for investment.
My 401k has very poor fund selections. Going forward (not
reallocating), I want to add a balanced fund to my portfolio, I can
buy it thru either a)401k (thru Charles Schwab opensource); b)Roth IRA
or c)my taxable brokerage acct. I'm thinking I should invest in index
funds in my taxable acct because they're tax efficient so that leaves
me options a and b. I was wondering if it's more advantageous to do
one over the other?

I'm in my early 30's so my investment horizon is at least 15 to 20
yrs.

thanks in advance.

If you can invest in a fund like OAKBX through your 401k, it hardly
has "very poor fund selections". I like that fund a lot -- very

The question was pretty obvious. You were just too satupid to understand it.
Get you dumb ugly ass out of here and drag it over to MIFP. I don't need
another asshole, I already have one.

Ed Zollars made that comment TO YOU back in 2005 when you were talking
out of our ass, Ed. I see some things don't change.

s o, simply post your question somewhere more frequented by
professionals and you'll find alot more answers like mine than you
will from the guy that has to result to temper tantrums and insulting
strangers.

hi all,

I want to add a big-cap balance fund to my portfolio(monthly auto.
investment), I'm looking at Oakmark's oakbx, Fidelity's fbalx or
vanguard's wellington fund. I can do this either thru my Roth IRA or
401k(thru Charles Schwab's Opensource). My questions is

1) is it more advantageous to do this thru my IRA or 401k? My
investment horizon is about 15 to 20 yrs.

2) I believe shouldn't do this thru my taxable acct which should be
reserved for my most tax-efficient funds (i.e., index funds).

3) another question is what is going to happen to the dividens or
interest income from the balance fund? are they automatically
reinvested or do I have to reinvest them myself?

thanks in advance.

s o