LakeTravis
Recycles dryer sheets
VWIAX = 9% of portfolio
VWENX = 28% of portfolio
VWENX = 28% of portfolio
I have ~20% of my IRA in Wellesley Fund. I am very concerned what will happen if Interest rate start going up? Any thoughts on this question will be appreciated.
And it appears most people who own a significant chunk of pssst...Wellesley prefer to place it in deferred, and avoid it in taxable. Thanks to those who participated.
Could very well be. But in general Wellesley would be more tax efficient than a bond fund, but less than most all equity funds, hence my interpretation. Just general placement strategy. Thanks...I don't know what conclusions you can draw from that, as I bet if you surveyed just those people, they would have more in deferred accounts in general, so of course they'd also tend to have more pssst... in those type of accounts...
Could very well be. But in general Wellesley would be more tax efficient than a bond fund, but less than most all equity funds, hence my interpretation. Just normal placement strategy. Thanks...
Could very well be. But in general Wellesley would be more tax efficient than a bond fund, but less than most all equity funds, hence my interpretation. Just normal placement strategy. Thanks...
This is a better explanation than I could probably provide... Principles of Tax-Efficient Fund Placement - BogleheadsWhy would this be the case? I am very new to mutual funds held outside of tax-deferred accounts, so the answer isn't readily apparent to me, and I will appreciate understanding what I'm missing here.
Based on what I've seen with these two types of funds so far, both types of funds will pay STCG, LTCG, and dividends, as I've seen in our IRAs, and withdrawals will be taxed at our normal tax rates.
With the little bit of VWINX we now hold outside tax-deferred, I would expect to pay 0% on LTCG and dividends if we stay within the 15% bracket, and normal tax rate on the STCG.
The only other difference in tax efficiency I understand is that which exists between actively managed funds and index funds, where fewer STCGs get generated because of less trading.
What am I missing here with respect to tax efficiency? Thanks!
Right, in that bond funds are generally less tax efficient than equity index funds.