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Recommendation for tax efficient fund at Vanguard?
Old 02-01-2007, 07:38 PM   #1
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Recommendation for tax efficient fund at Vanguard?

I'm looking for recommendations on a tax efficient Vanguard fund for my after-tax investment account. The vast majority of our savings is either in real estate or in pre-tax IRAs, 401ks or deferred compensation accounts. I prefer to keep the after tax $$ at Vanguard since that's where all the retirement accounts are. We have about 80K (or about 6% of total liquid portfolio) to invest. Right now it is sitting in a money market at Vanguard. Our AA for the entire portfolio is a mess right now. One of those cases of you don't know how much you don't know until you run across a board like this one! I've come to realize our success so far (and we have had some success) has been purely dumb luck.

I'm leaning toward a couple target retirement funds, keeping the bond allocation to about 10 - 15%, beefing up the international to 20% and supplementing with about 10% in REITs. This is all in pretax accounts. Bond allocation is low due to a cash balance pension plan (about 10% of liquid assets) in a fixed income account (no choice) earning about 5%. Additionally, we have income from commercial properties that I am viewing as "bond-like." Don't know if that is a legit assessment--that's just how I'm working through it.

My question is what do I do with the after tax $$? We also have an emergency fund, so the full 80k is ready to be invested somewhere. Advice appreciated.
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Re: Recommendation for tax efficient fund at Vanguard?
Old 02-01-2007, 07:44 PM   #2
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Re: Recommendation for tax efficient fund at Vanguard?

Uh, what asset class does the $80K have to be in?
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Re: Recommendation for tax efficient fund at Vanguard?
Old 02-01-2007, 07:58 PM   #3
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Re: Recommendation for tax efficient fund at Vanguard?

Quote:
Originally Posted by LOL!
Uh, what asset class does the $80K have to be in?
I think I can make the plan work with whatever asset class I decide on. I'll just adjust the pretax investments. Mainly looking to minimize taxes as we are in the ridiculously high bracket.
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Re: Recommendation for tax efficient fund at Vanguard?
Old 02-01-2007, 08:01 PM   #4
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Re: Recommendation for tax efficient fund at Vanguard?

So any equity fund with "tax-managed" in the name. That was simple.
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Re: Recommendation for tax efficient fund at Vanguard?
Old 02-01-2007, 08:19 PM   #5
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Re: Recommendation for tax efficient fund at Vanguard?

Vanguard ETFs are also tax-efficient.
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