Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Tax managed funds
Old 05-20-2014, 02:45 PM   #1
Recycles dryer sheets
Join Date: Mar 2014
Location: Islands
Posts: 309
Tax managed funds

I know I should also post this on Bogleheads, but I have not officially joined yet. And, I know there are many savvy investors here as well.

My question: I am still working and am in the highest tax bracket. I am looking at buying Tax-Managed Capital Appreciation - Admiral Shares.

I am looking at this to have US large cap exposure but in a tax-efficient way. I don't need dividends yet; really looking more towards growth.

Pros and cons of tax managed?

Thanks in advance.

Travelwanted is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-20-2014, 03:59 PM   #2
MBAustin's Avatar
Join Date: Jul 2010
Posts: 3,354
We've owned this fund (along with its counterpart Tax-Managed Growth and Income) for more than 10 years. We chose them while still w*rking when we had some extra cash to invest and like you didn't really want to put it in a fund that would throw off lots of dividends and/or CGs. We haven't added to it in many years but are happy enough with it to hold it.

"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute." William Feather
ER'd Oct. 2010 at 53. Life is good.
MBAustin is offline   Reply With Quote
Old 05-21-2014, 06:56 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2005
Posts: 7,662
I wonder what "tax-managed" means anymore in the context of the Vanguard funds.

Vanguard's stable of broad-market index funds are reasonably tax-efficient because of the associated ETF share class lets the managers bleed off low-basis stocks so that the mutual fund has little to no cap gains each year.

One might calculate the tax-efficiency for their own personal situation of these funds over the past few years. One may find that the Cap-Apprec is only a smidgeon more tax-efficient than the Total Stock Market Index, the Large-cap Index, and the S&P 500 Index fund.

Furthermore, Vanguard merged its tax-managed international fund into its developed markets index fund. To me that says that the days of Cap Apprec might be numbered.
LOL! is offline   Reply With Quote
Old 05-21-2014, 07:01 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
Join Date: Mar 2007
Posts: 8,490
My tax managed "fund" is Berkshire Hathaway stock - no dividends, no taxes until I sell.
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Vanguard Managed Retirement Income Funds hogwild FIRE and Money 2 01-17-2008 12:37 PM
Vanguard Managed Payout aka Harvard Endowment Funds cute fuzzy bunny FIRE and Money 3 10-31-2007 07:10 PM
Scott Adams on Managed Funds BigMoneyJim FIRE and Money 6 12-02-2006 03:46 PM
Help us rescue our managed funds Gillette FIRE and Money 29 09-21-2006 10:32 AM
Actively managed funds have + alphas in the worst of times wildcat FIRE and Money 26 09-13-2006 10:52 AM


All times are GMT -6. The time now is 04:02 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.