Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Recommendation for tax efficient fund at Vanguard?
Old 02-01-2007, 06:38 PM   #1
Recycles dryer sheets
 
Join Date: Dec 2006
Posts: 65
Recommendation for tax efficient fund at Vanguard?

I'm looking for recommendations on a tax efficient Vanguard fund for my after-tax investment account. The vast majority of our savings is either in real estate or in pre-tax IRAs, 401ks or deferred compensation accounts. I prefer to keep the after tax $$ at Vanguard since that's where all the retirement accounts are. We have about 80K (or about 6% of total liquid portfolio) to invest. Right now it is sitting in a money market at Vanguard. Our AA for the entire portfolio is a mess right now. One of those cases of you don't know how much you don't know until you run across a board like this one! I've come to realize our success so far (and we have had some success) has been purely dumb luck.

I'm leaning toward a couple target retirement funds, keeping the bond allocation to about 10 - 15%, beefing up the international to 20% and supplementing with about 10% in REITs. This is all in pretax accounts. Bond allocation is low due to a cash balance pension plan (about 10% of liquid assets) in a fixed income account (no choice) earning about 5%. Additionally, we have income from commercial properties that I am viewing as "bond-like." Don't know if that is a legit assessment--that's just how I'm working through it.

My question is what do I do with the after tax $$? We also have an emergency fund, so the full 80k is ready to be invested somewhere. Advice appreciated.
Tracy42 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Recommendation for tax efficient fund at Vanguard?
Old 02-01-2007, 06:44 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 10,252
Re: Recommendation for tax efficient fund at Vanguard?

Uh, what asset class does the $80K have to be in?
LOL! is offline   Reply With Quote
Re: Recommendation for tax efficient fund at Vanguard?
Old 02-01-2007, 06:58 PM   #3
Recycles dryer sheets
 
Join Date: Dec 2006
Posts: 65
Re: Recommendation for tax efficient fund at Vanguard?

Quote:
Originally Posted by LOL!
Uh, what asset class does the $80K have to be in?
I think I can make the plan work with whatever asset class I decide on. I'll just adjust the pretax investments. Mainly looking to minimize taxes as we are in the ridiculously high bracket.
Tracy42 is offline   Reply With Quote
Re: Recommendation for tax efficient fund at Vanguard?
Old 02-01-2007, 07:01 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 10,252
Re: Recommendation for tax efficient fund at Vanguard?

So any equity fund with "tax-managed" in the name. That was simple.
LOL! is offline   Reply With Quote
Re: Recommendation for tax efficient fund at Vanguard?
Old 02-01-2007, 07:19 PM   #5
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
Re: Recommendation for tax efficient fund at Vanguard?

Vanguard ETFs are also tax-efficient.
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Reply

Tags
vanguard


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Vanguard Fund Recommendation cube_rat FIRE and Money 19 08-20-2006 09:05 PM
Vanguard Precious Metals Fund ash FIRE and Money 13 05-20-2006 10:56 AM
Vanguard Fund Actions REWahoo FIRE and Money 1 04-20-2006 02:36 PM
Vanguard Dividend Appreciation Index Fund ats5g FIRE and Money 5 02-01-2006 06:37 PM
Vanguard Fund Commissions mickeyd FIRE and Money 1 01-03-2005 10:58 AM

» Quick Links

 
All times are GMT -6. The time now is 09:15 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.