Telly
Thinks s/he gets paid by the post
- Joined
- Feb 22, 2003
- Messages
- 2,419
This may be a bit unusual... so I need to paint-in the background first:
DW will be receiving an inheritance. It will be kept as "Separate Property" in our Shared-Property state. Which means that all Income, as defined by our state, must not be co-mingled, or else the Separate Property reverts to Shared Property. Years ago, each of us received inheritances (no, NOT yacht class!) which we kept as separates. At the time, we each put them into moderate-allocation (balanced) funds. DW's went into Wellington. Dividends are taken as cash, any CGs are reinvested. These are in TAXABLE accounts, an important point. For years, the dividends that these put out were helpful. But Dividends and Capital Gains became an issue with respect to Roth conversions.
To be able to continue Roth conversions, the next inheritance can NOT go into Wellington! I'm doing VG fund research for DW and sharing it with her. The ultimate decision is hers. And it will be a VG mutual FUND, not an ETF. (please, let's not get into ETFs)
First looked at VBIAX, the VG Balanced Index Fund. Even though it's an index, divs will be a problem, and the effects from its fixed side, too.
Then VTMFX, the VG Tax-Managed Balanced Fund. A bit better, but still too much, and also the CGs that can come about due to managing.
Then, in a big shift, to skip balanced funds, which have the built-in problem in a taxable account. So then VFIAX the VG S&P 500 Fund. Dividends are lower, and CGs are extremely rare. So that is a possibility, with all comments about increased volatility in comparison to balanced funds understood.
Then, thinking about it, going further out in volatility, Growth Funds can be very low-dividend, how about a Growth INDEX? Looking at VIGAX, the VG Growth Index Fund. Divs are significantly less than the S&P 500 fund, which makes sense. Did find a bogleheads wiki on it, that had fund inflow/outflows, in 2019 the outflows were large, the fund is smaller than it used to be.
More research is required, need to look at a greater history of divs & CGs rather than just the easy-to-find 2020 distributions.
Does anyone have VIGAX? Anything else at VG I and DW should look at too? Comments welcome on the search for a fund in this odd situation! Please remember, it will be going into a stand-alone TAXABLE account.
DW will be receiving an inheritance. It will be kept as "Separate Property" in our Shared-Property state. Which means that all Income, as defined by our state, must not be co-mingled, or else the Separate Property reverts to Shared Property. Years ago, each of us received inheritances (no, NOT yacht class!) which we kept as separates. At the time, we each put them into moderate-allocation (balanced) funds. DW's went into Wellington. Dividends are taken as cash, any CGs are reinvested. These are in TAXABLE accounts, an important point. For years, the dividends that these put out were helpful. But Dividends and Capital Gains became an issue with respect to Roth conversions.
To be able to continue Roth conversions, the next inheritance can NOT go into Wellington! I'm doing VG fund research for DW and sharing it with her. The ultimate decision is hers. And it will be a VG mutual FUND, not an ETF. (please, let's not get into ETFs)
First looked at VBIAX, the VG Balanced Index Fund. Even though it's an index, divs will be a problem, and the effects from its fixed side, too.
Then VTMFX, the VG Tax-Managed Balanced Fund. A bit better, but still too much, and also the CGs that can come about due to managing.
Then, in a big shift, to skip balanced funds, which have the built-in problem in a taxable account. So then VFIAX the VG S&P 500 Fund. Dividends are lower, and CGs are extremely rare. So that is a possibility, with all comments about increased volatility in comparison to balanced funds understood.
Then, thinking about it, going further out in volatility, Growth Funds can be very low-dividend, how about a Growth INDEX? Looking at VIGAX, the VG Growth Index Fund. Divs are significantly less than the S&P 500 fund, which makes sense. Did find a bogleheads wiki on it, that had fund inflow/outflows, in 2019 the outflows were large, the fund is smaller than it used to be.
More research is required, need to look at a greater history of divs & CGs rather than just the easy-to-find 2020 distributions.
Does anyone have VIGAX? Anything else at VG I and DW should look at too? Comments welcome on the search for a fund in this odd situation! Please remember, it will be going into a stand-alone TAXABLE account.