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Need Advice On Taxable Acct
09-03-2008, 10:51 AM
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#1
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Dryer sheet aficionado
Join Date: May 2008
Posts: 32
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Need Advice On Taxable Acct
Hi, I want to create a taxable acct and am thinking of the Vanguard Total Stock Market Index fund and one of their internatoinal index funds. I want to also include bonds for stability and wonder if you can suggest a tax-efficient bond fund. Thanks.
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09-03-2008, 11:21 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Aug 2007
Posts: 1,224
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Both the TSM and Int index funds work well in taxable. Do you not have tax protected accounts in which to put your bonds? While there are many tax efficient bond funds out there the yield is significantly lower.
DD
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09-03-2008, 11:22 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Apr 2007
Location: west bloomfield MI
Posts: 2,223
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Consider muni bonds for tax efficiency.
__________________
Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
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09-03-2008, 11:25 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Nov 2007
Posts: 1,052
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I've never liked tax efficient funds. It's tough enough getting return without trying to be tax efficient as well. I guess if the fund loses enough money, it's pretty efficient. I agree with the post above, buy muni's if it's a problem.....or you could buy.........aw nevermind.
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09-03-2008, 11:48 AM
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#5
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Dryer sheet aficionado
Join Date: May 2008
Posts: 32
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Hi, I do have a 401(k) but they don't offer index funds and so I have my money in a balanced fund. I'm hoping to put together a separate balanced taxable portfolio using indexing.
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09-04-2008, 09:58 AM
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#6
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Full time employment: Posting here.
Join Date: Oct 2003
Posts: 961
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 Quote:
Originally Posted by Marcretire
Hi, I do have a 401(k) but they don't offer index funds and so I have my money in a balanced fund. I'm hoping to put together a separate balanced taxable portfolio using indexing.
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check out Vanguard's Tax Managed Balanced Fund. 50% muni bonds and 50% stocks [indexed to Russell 1000 index, sampled of course for lower dividends].
- alec
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09-04-2008, 10:25 AM
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#7
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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Quote:
Originally Posted by ats5g
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Just remember there's a 1% penalty if you sell this fund within 5 years.
I know it's important to reduce redemptions for tax efficiency and low expenses, but five years??
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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09-04-2008, 11:32 AM
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#8
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Recycles dryer sheets
Join Date: Jul 2005
Posts: 113
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the tax efficient thing to do would be to put your bonds in a tax deferred account and have all equities in the taxable account so that in aggregate you have the correct asset allocation without sacrificing the potential for return by investing in munis.
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