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Need Advice On Taxable Acct
Old 09-03-2008, 11:51 AM   #1
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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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Old 09-03-2008, 12:21 PM   #2
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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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Old 09-03-2008, 12:22 PM   #3
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Consider muni bonds for tax efficiency.
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Old 09-03-2008, 12:25 PM   #4
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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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Old 09-03-2008, 12:48 PM   #5
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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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Old 09-04-2008, 10:58 AM   #6
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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.
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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Old 09-04-2008, 11:25 AM   #7
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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].
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??
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Old 09-04-2008, 12:32 PM   #8
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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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