Wellesley in taxable

[Lazyfabs]

knowing that holding this fund in taxable is not the most tax efficient thing to do, has anyone held it in a taxable account for whatever reason or period of time and regret doing so and why?

thanks

 

[ejman]

I started investing in 1987 with both Welleslley and Wellington in my taxable account. My only regret is that over the subsequent decades I needlessly complicated my life by researching and owning dozens of different funds, slicing and dicing etc etc. If I'd only bought 50/50 Wellsi/Welltn from the beginning and kept adding just to those two it would have been a much simpler investment life with ample time left over for navel gazing and other more worthwhile pursuits.

 

[Lazyfabs]

I started investing in 1987 with both Welleslley and Wellington in my taxable account. My only regret is that over the subsequent decades I needlessly complicated my life by researching and owning dozens of different funds, slicing and dicing etc etc. If I'd only bought 50/50 Wellsi/Welltn from the beginning and kept adding just to those two it would have been a much simpler investment life with ample time left over for navel gazing and other more worthwhile pursuits.

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?

 

[ejman]

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