Hi:
I am trying to determine whether it makes sense for me to change mutual fund investments in after tax accounts from funds with expense ratios between .5 % to 1.0 % to similar style funds with expense ratios ranging from .05 % to .3 %?
I would have to pay long term capital gains tax at 15 percent. There would be some long term losses that would offset long term gains, but there would still be an overall long term gain.
So, how do I determine if it is in my long term interests to make these fund changes?
I checked FIRECalc and was surprised to learn that I could increase the overall success rate of my retirement plan by about 5 % by reducing my overall expense ratio from .6 % to .2 %.
Thanks for your insight.
I am trying to determine whether it makes sense for me to change mutual fund investments in after tax accounts from funds with expense ratios between .5 % to 1.0 % to similar style funds with expense ratios ranging from .05 % to .3 %?
I would have to pay long term capital gains tax at 15 percent. There would be some long term losses that would offset long term gains, but there would still be an overall long term gain.
So, how do I determine if it is in my long term interests to make these fund changes?
I checked FIRECalc and was surprised to learn that I could increase the overall success rate of my retirement plan by about 5 % by reducing my overall expense ratio from .6 % to .2 %.
Thanks for your insight.