retire to nature
Recycles dryer sheets
- Joined
- Aug 10, 2018
- Messages
- 383
Hi All,
I have a question about Vanguard fund.
It has been 2month after FIRE, so I have been studying about how I would invest from now on.
My stock is vanguard fund, VTSAX (total index) and VFIAX(S&P index), in both taxable and retirement account.
I have learned about ETF vs Mutual fund. But I am not clear what means about tax advantage of ETF. Honestly, I didn't know ETF until recently. I heard long time ago, Vanguard Index fund is good to invest, so I was just invest monthly automatic investment way. I like that feature mostly, and I heard ETF is a bit pain in ass like day trading, but everywhere it says ETF has a better tax advantage of.
I have cash flow from rental properties, so I don't have or buy any bond etc. But, I know some day when no rentals, I have to allocate to make cash flow. So which strategy should I go.
Somewhere internet S&P 500 ETF is tax deferred(I couldn't confirm in vanguard.com for this info). then not S&P 500 mutual fund is not? then total index is not tax deferred? Is tax deferred good for me?
Also, I run into the statement about Vanguard patent. I don't understand what that means.
Until 2023, Vanguard holds a patent on the ability of its mutual funds to flow capital gains through its ETF shares of the same fund.
Should I do anything for it before or after 2023 then?
My question is if it is better to buy ETF from now on? Does it matter? And I am not sure why ETF expense is cheaper for these funds, so should I bother to convert to ETF(0.01% difference for asset over 1mil)? Just leave it as is, and start to buy ETF instead of MF?
I have researched recent days, but I am not sure from my perspective which would be good for me in tax advantage part. what kind tax advantage?
I have a question about Vanguard fund.
It has been 2month after FIRE, so I have been studying about how I would invest from now on.
My stock is vanguard fund, VTSAX (total index) and VFIAX(S&P index), in both taxable and retirement account.
I have learned about ETF vs Mutual fund. But I am not clear what means about tax advantage of ETF. Honestly, I didn't know ETF until recently. I heard long time ago, Vanguard Index fund is good to invest, so I was just invest monthly automatic investment way. I like that feature mostly, and I heard ETF is a bit pain in ass like day trading, but everywhere it says ETF has a better tax advantage of.
I have cash flow from rental properties, so I don't have or buy any bond etc. But, I know some day when no rentals, I have to allocate to make cash flow. So which strategy should I go.
Somewhere internet S&P 500 ETF is tax deferred(I couldn't confirm in vanguard.com for this info). then not S&P 500 mutual fund is not? then total index is not tax deferred? Is tax deferred good for me?
Also, I run into the statement about Vanguard patent. I don't understand what that means.
Until 2023, Vanguard holds a patent on the ability of its mutual funds to flow capital gains through its ETF shares of the same fund.
Should I do anything for it before or after 2023 then?
My question is if it is better to buy ETF from now on? Does it matter? And I am not sure why ETF expense is cheaper for these funds, so should I bother to convert to ETF(0.01% difference for asset over 1mil)? Just leave it as is, and start to buy ETF instead of MF?
I have researched recent days, but I am not sure from my perspective which would be good for me in tax advantage part. what kind tax advantage?
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