Vanguard Tax Managed Balanced

[Hotrod 140]

Hi everyone

Quick question, are there any drawbacks to investing in Vanguard Tax Managed Balanced fund in an IRA or any other tax deferred account. I like the make up and rebalance feature of the fund. Thanks for any comments

 

[jerome len]

You would want Vanguard TM balanced fund in a taxable account since you don't have s to pay taxes on the muni bond interest which is almost 1/2 of the invested funds. Vanguard also has a balanced fund account, taxable but earns a little more. I've had TM balanced for years and absolutely love it........one of my favorite holdings.

 

[youbet]

Hi everyone

Quick question, are there any drawbacks to investing in Vanguard Tax Managed Balanced fund in an IRA or any other tax deferred account. I like the make up and rebalance feature of the fund. Thanks for any comments

Because municipals are performing so well these days, there is some justification for holding them in an IRA. You would need to do your own due diligence on that.

As to whether the equity side of the Vanguard Tax Managed Fund makes sense for an IRA is another question. If you're a growth stock advocate, perhaps it does.

 

[MBAustin]

We have held other Vanguard Tax-Managed funds (Growth and Growth & Income) for years. We bought them when we had some extra cash and didn't want to increase our concentration in our other taxable accounts, plus the idea of getting some decent appreciation with minimal tax impact was appealing. They have done OK and definitely manage things to throw off minimal capital gains and dividend distributions, which is where the tax-managed aspect is nice.

In an IRA, that doesn't really matter. So I'd pick whatever fund meets your needs for your asset allocation regardless of tax-managed or not.