I have a healthy chunk of money coming from a matured CD and am rethinking the way I want to invest it going forward.
I'm now of the opinion that I want to take a little more risk for a little more reward and open a Vanguard account which will be a taxable account.
I've read through many threads here already which have been very helpful in suggesting that it's best to give wide berth to income producing funds and target retirement funds. I also read that balanced funds are generally not tax efficient (though Vanguard has a tax managed balance fund).
I won't need this money for 5+ years and don't need it to produce income. I don't want to take wild risks with it (as I'm already retired) but would like reasonable growth. I'd like to keep it simple too, preferably split the money between 2 funds. One domestic and one international.
I'm not really sure what would be a good mix and if I should use only tax managed funds.
These are the funds that I have under consideration but am open to other suggestions of course.
50% in either Tax Managed International (VTMGX) or Total International Stock Index (VGTSX).
50% in either Tax Managed Balance (VTMFX) or Total Stock Market Index (VTSMX) or 500 Index (VFINX).
I'm unsure if the tax benefits of a tax managed fund would outweigh the higher growth of the other funds.
Would any of those be reasonable choices?
I'm now of the opinion that I want to take a little more risk for a little more reward and open a Vanguard account which will be a taxable account.
I've read through many threads here already which have been very helpful in suggesting that it's best to give wide berth to income producing funds and target retirement funds. I also read that balanced funds are generally not tax efficient (though Vanguard has a tax managed balance fund).
I won't need this money for 5+ years and don't need it to produce income. I don't want to take wild risks with it (as I'm already retired) but would like reasonable growth. I'd like to keep it simple too, preferably split the money between 2 funds. One domestic and one international.
I'm not really sure what would be a good mix and if I should use only tax managed funds.
These are the funds that I have under consideration but am open to other suggestions of course.
50% in either Tax Managed International (VTMGX) or Total International Stock Index (VGTSX).
50% in either Tax Managed Balance (VTMFX) or Total Stock Market Index (VTSMX) or 500 Index (VFINX).
I'm unsure if the tax benefits of a tax managed fund would outweigh the higher growth of the other funds.
Would any of those be reasonable choices?