Originally Posted by Lazyfabs
did the tax issue of having both of these funds in a taxable account ever cause you to cringe and wish you had done it differently taking into account the tax inefficiencies?
Not really. It all worked out OK - I Er'd at 52 having simply invested about 15% per year of a middle manager salary all along and reinvested all of my distributions until I ER'd- Started taking all distributions in cash after retirement.
Obviously, If you can invest in a stock fund where you have no taxable distributions until you are ready to retire all the better but those funds tend to be very volatile. If you can live with the volatility and not sell in a panic when the market crashes 50% and your fund drops 65% because the manager bet on the wrong sector you might be better off than investing in a balanced fund. For my temperament things worked out just fine. YMMV