This article is composed by Bogleheads® forum member digarei
ELEVEN (11) persons met at a quiet mid-town location in Sacramento on the Second Saturday of April at 10:30 AM to talk about Roth IRA Conversions and Tax-Efficient Bucket Portfolios, both subjects aligned with a series of contemporary discussions (“T A X E S”) scheduled during the months of March, April and May 2016.
Chapter member chasingbutterflies provided the introduction, a concise but considered presentation on both the benefits and mechanics of performing Roth conversions. This was followed by a group discussion of Roth IRA conversions that lasted about 15 minutes before morphing into other subjects.
The next topic, Tax-Efficient Bucket Portfolios, was based on one of a series of articles written by Christine Benz, of Morningstar, in 2015, which elaborated the ‘bucket portfolio’ concept. As described, it’s a retirement investment plan and withdrawal strategy for investors/retirees with large taxable accounts at Vanguard.
Ms. Benz’ emphasis is on creating a long-term strategy with sufficient income to support nearer term objectives while remaining as tax efficient as possible. To that end, she recommends a number of tax-managed Vanguard funds for both equities and fixed income assets, and specific allocations for each fund based on the investor’s time horizon. A copy of the article was distributed to attendees.
For those interested in reading the article, it can be found here:
- Tax-Efficient Bucket Portfolios for Vanguard Investors by Christine Benz, Morningstar. June 14, 2015
Rounding out the exchange between members on bucket portfolios were a number of unscheduled topics, some of which proved to be irresistible in conversation.
When the meeting was over NINE (9) members gathered for brunch at Ink Eats & Drinks at 28th and N streets to celebrate the 1st year anniversary of Sacramento Area Bogleheads.
An edited transcript (30 pages) that includes the discussion items and conversations alluded to above was e-mailed to meeting attendees on 7-27-2016.
¹ If you live in the Sacramento area or its outlying communities, ‘The Smartest Thing You Can Do For Yourself’ is to attend a meeting of like-minded individuals to participate in the “Live… From Sacramento!” version of the Bogleheads forum. We meet every single month on Second Saturday at a nice location with free parking.