T
Tiger
Guest
Do you automatically reinvest interest & dividends?
Do you automatically reinvest interest & dividends?
I auto reinvest it all in my tax deferred account but do not in my taxable account. I live off my taxable account distributions.
I auto reinvest it all in my tax deferred account but do not in my taxable account. I live off my taxable account distributions.
LOL! had posted a link to this doc in another thread
https://institutional.vanguard.com/iip/pdf/WP_TotalRet.pdf
It shows how it is more tax-efficient to sell holdings to get your living expenses than to use distributions. Its recommendation is to use tax-managed funds that have very low distributions.
I think it makes sense, but for me (and you may be in the same situation) - I'll realize huge capital gains if I move my taxable money from current mutual funds into tax-managed ones.