Just opened a Vanguard Roth IRA...

General TSP Discussion.

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mmmmmbeer
Posts: 917
Joined: Wed May 11, 2016 11:00 am

Re: Just opened a Vanguard Roth IRA...

Post by mmmmmbeer »

So essentially, a guy needs to have two IRA's ready.. a Traditional and a Roth.

When it's time, roll-over all but a few hundred dollars of each TSP fund into their perspective IRA counterparts. Once you have them seperated.. roll-over the Traditional part back into traditional TSP?
Those who 'abjure' violence can do so only because others are committing violence on their behalf.

mindofmush
Posts: 353
Joined: Mon Jul 02, 2012 1:38 pm

Re: Just opened a Vanguard Roth IRA...

Post by mindofmush »

That's the way it looks right now.

evilanne mentioned that the new rules might change this (so that you could move only Roth or Trad) so maybe in Feb 2018 we'll see good news.

It would be nice.
mo meng, mo ching (which loosely means: no money, no life)

mmmmmbeer
Posts: 917
Joined: Wed May 11, 2016 11:00 am

Re: Just opened a Vanguard Roth IRA...

Post by mmmmmbeer »

Ok... doing a little research on "Free Riding". Looks like we'll be okay as long as our strategy doesn't have any turn arounds shorter than 4 days.
It is OK to BUY with unsettled funds. It is the selling of whatever you just bought before the funds from the first sale settle (3 days) that is the problem. In essence you would be selling something you don't yet own.
Those who 'abjure' violence can do so only because others are committing violence on their behalf.

mmmmmbeer
Posts: 917
Joined: Wed May 11, 2016 11:00 am

Re: Just opened a Vanguard Roth IRA...

Post by mmmmmbeer »

Okay.... after messing around with the TSP Calc tonight I think I've come up with one that won't violate "free riding" rule by having all the trades be at least 2 days settled:

#19042

http://tspcalc.com/seasonal.php?ID=1904 ... sortby=avg

Mean: 31.99

Std Dev: 5.46

CAGR: 31.88

Time in fund (%):

G F C S I

22 23 16 33 6

Time In Stocks (C,S,I): 54.80

Took me a few tries in comparison with a few others. It has a slightly higher Std Dev but it's still pretty low. Time in Stocks is even lower.
Those who 'abjure' violence can do so only because others are committing violence on their behalf.

mindofmush
Posts: 353
Joined: Mon Jul 02, 2012 1:38 pm

Re: Just opened a Vanguard Roth IRA...

Post by mindofmush »

mucho beer,

Brokerage houses that offer a limited-margin upgrade to an IRA account (to get around that pesky free riding rule) are: Fidelity,TD Ameritrade and Interactive Brokers (even Robinhood offers instant settlement but it doesn't offer any IRAs yet)

Vanguard, Etrade and Schwab are cash only for IRAs so you will have to plan around the 2-day settlement rule.

BIG PLUS: Vanguard (and Schwab) don't charge Early-redemption fees on their commission free ETFs.
Fidelity charges a $7.95 early redemption fee if you sell your ETF within 30 days, TD Ameritrade and Etrade charge $19.95 fees.

Vanguard does limit you to 25 transactions of the same commission-free ETF per year (which makes #19042 OK)

Looks like your plan to run #19042 using Vanguards commission free ETFs will work the way you want it to.
mo meng, mo ching (which loosely means: no money, no life)

mmmmmbeer
Posts: 917
Joined: Wed May 11, 2016 11:00 am

Re: Just opened a Vanguard Roth IRA...

Post by mmmmmbeer »

mindofmush wrote:mucho beer,

Brokerage houses that offer a limited-margin upgrade to an IRA account (to get around that pesky free riding rule) are: Fidelity,TD Ameritrade and Interactive Brokers (even Robinhood offers instant settlement but it doesn't offer any IRAs yet)

Vanguard, Etrade and Schwab are cash only for IRAs so you will have to plan around the 2-day settlement rule.

BIG PLUS: Vanguard (and Schwab) don't charge Early-redemption fees on their commission free ETFs.
Fidelity charges a $7.95 early redemption fee if you sell your ETF within 30 days, TD Ameritrade and Etrade charge $19.95 fees.

Vanguard does limit you to 25 transactions of the same commission-free ETF per year (which makes #19042 OK)

Looks like your plan to run #19042 using Vanguards commission free ETFs will work the way you want it to.

Sweet.. nice confirmation. Put in 1200.. up $11 bucks so far.. tax free! Haha...
Those who 'abjure' violence can do so only because others are committing violence on their behalf.

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Fund Prices2024-03-28

FundPriceDayYTD
G $18.15 0.05% 1.05%
F $19.08 -0.06% -0.74%
C $82.21 0.11% 10.55%
S $82.43 0.30% 6.92%
I $42.57 -0.24% 5.95%
L2065 $16.38 0.02% 8.37%
L2060 $16.39 0.02% 8.38%
L2055 $16.39 0.02% 8.38%
L2050 $32.73 0.01% 6.95%
L2045 $14.91 0.02% 6.58%
L2040 $54.38 0.02% 6.22%
L2035 $14.34 0.02% 5.79%
L2030 $47.67 0.02% 5.38%
L2025 $13.15 0.03% 3.43%
Linc $25.61 0.03% 2.82%

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Pending Allocations

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