I have a 401K and Roth that is maxed out, so additional income has been going into a taxable account.
Right now that taxable account is holding Vanguard Tax-Managed Small-Cap Fund Admiral Shares and Vanguard Total International Stock Index Fund Admiral Shares. Of course these are a portion of my overall asset allocation across taxable and non-taxable accounts.
I could move the taxable accounts into an actively-managed investment firm (Country Trust), where I also happen to have car/home insurance. The fee is 1.25%. The management firm uses individual stocks/bonds/etc to manage this in a tax-advantaged manner. So the idea is that moving into active management for this account would be done, despite the higher fees, for tax advantage purposes. I would go into a "growth" type category which has a typical allocation for this type of thing (80% stock, 20% bond/cash).
So...why not?
One problem is the taxes I'd incur from selling the Vanguard funds...but over long term that cost would be mitigated by the supposed advantage of the active management.
Thanks!
Right now that taxable account is holding Vanguard Tax-Managed Small-Cap Fund Admiral Shares and Vanguard Total International Stock Index Fund Admiral Shares. Of course these are a portion of my overall asset allocation across taxable and non-taxable accounts.
I could move the taxable accounts into an actively-managed investment firm (Country Trust), where I also happen to have car/home insurance. The fee is 1.25%. The management firm uses individual stocks/bonds/etc to manage this in a tax-advantaged manner. So the idea is that moving into active management for this account would be done, despite the higher fees, for tax advantage purposes. I would go into a "growth" type category which has a typical allocation for this type of thing (80% stock, 20% bond/cash).
So...why not?
One problem is the taxes I'd incur from selling the Vanguard funds...but over long term that cost would be mitigated by the supposed advantage of the active management.
Thanks!