Mining

Tsp investment advice 2015

Please forward this error screen to sharedip-10718028114. Please forward this error screen tsp investment advice 2015 sharedip-10718028114. In Part IV we looked at some sample portfolios built from the three key Index Funds I favor, plus cash.

Those four are what we call investments. But in our complex world we must next consider where to hold these investments. That is, in which bucket should which investment go? Now at this point I must apologize to my international readers. This post is about to become very USA centric. My guess is, that at least for western style democracies, there are many similarities and possibly you can extrapolate the information here into something relevant to where you live.

Or you might post a country specific question in the comments below. Here in the USA the government taxes dividends, interest and capital gains. But it has also created several Tax Advantaged Buckets to encourage retirement savings. While well-intentioned, this has created a whole new level of complexity. Volumes have been written about each of these and the strategies now associated with them. Clearly, we haven’t the time or space to review it all. The Ordinary Bucket is, in a sense, no bucket at all.

This is where everything would go were there no taxes on investment returns. We would just own what we own. There are several variations of Tax Advantaged Buckets, and we’ll look at each. These are the buckets in which we’ll want to place our less tax efficient investments.

In general this means investments that generate dividends and interest. Cash is also all about interest but, more importantly, it is all about ready access for immediate needs. None of this is carved in stone. Proper allocation should trump bucket choice. Your tax bracket, investment horizon and the like will color your personal decisions. But the above should give you a basic framework for considering the options. None of these eliminates your tax obligations.