bonesly wrote: Mon Nov 17, 2025 12:58 pm
magnanimity wrote: Mon Nov 17, 2025 12:14 pm
In the OP, I mentioned “1.Deploying cash in taxable to VTSAX/VTIAX.” Somehow that got translated to “1.Deploying [$180K] cash in taxable to VTSAX/VTIAX.” Actual cash in taxable is “12.64% VMFXX” (approximately $520,000). Given the correct amount it seems there’d be no need to trim VTSAX in taxable or to touch the HYSA $180,000 which is our separate long-standing emergency fund held at a separate institution.
Look again at the Current layout. There’s $519.33K in VMFXX and $180.37K in HYSA. The $519.33K in VMFXX was swapped to VUSXX in the Proposed layout and the $180K in the HYSA was moved to VTSAX. So I don’t think the suggestions in the proposed layout are incorrect (still sums to $4,100K total), but the HYSA is not tax-efficient so I’d either move that to VUSXX if you’re keeping it or move it to VTSAX if you don’t need the extra cash (you already have a bigger than average cash pile).
Given a 24% Fed + 5% NE tax burden, I’d probably even consider moving all the cash to the SEP IRA by using the concept for Holding Cash in a Tax-Deferred Account; VUSXX is more tax-friendly than VMFXX but you’re still paying 24% Fed on interest every month and it would be far, far better to only pay 15% LTCG from VTSAX when you need to spend cash than paying it every month whether you need it or not.
I may still be misunderstanding your basic intent, which would likely be clarified if you said what your desired AA was among stocks, bonds, and cash.
Bonesly, I think I misunderstood somewhat and perhaps I didn’t provide enough context in my OP as well. Looking back I clearly see you account for both the HYSA cash and the VMFXX cash.
What I set out to accomplish is maintain my overall current stock/bond allocation while deploying the cash from VMFXX. Available efficiencies (BH 20% international to “move the needle”, FTC) make sense to me and seem within the realm of this exercise. Especially since they involve re-allocating to a fund I already own (VTIAX). So let’s say
1. I want to stay approximately 70/30 and get to 20% international.
2. I don’t want to hold cash in my taxable account, Roth or SEP IRA (I held no cash there prior to the home sale).
3. I want to find the best way to fund our Roth accounts (1 of which I have listed above, 1 of which SHE will open), perhaps through dividends from taxable as one poster mentions above. It seems this would eliminate my wash sale concerns without adding funds since I would not be selling shares in taxable to buy shares in Roth. If I am no longer funding my SEP IRA I don’t believe it presents wash sale considerations.
4. The HYSA $180k serves two functions: a. it’s the account we fund a portion of our current expenses through AND b. it’s a contingency account we can use if we were to temporarily lose access to our taxable, Roth and SEP which are all under the same roof. Possibly it’s an accounting/behavioral error on our part but we feel better that this account, because of it’s purpose(s) is FDIC insured as well as held at an institution outside.
