riskaverse said:
Which means you should probably not be purchasing mutual funds in taxable accounts the last couple of months of the year.
Let's me get this straight ...
The naive would say it's a GOOD thing to buy right before the dividend (or sell
right after the dividend), because you're getting something for nothing. The
rub is, the share price drops by the amount of the dividend, right ? BUT, do
ordinary dividends AND capital-gains distributions BOTH work like this ?
Do individual stocks work the same ?
Maybe I oughta go sell the big dollop of Wellesley I just bought in my new
Vanguard account ? Of course, any price fluctuations could easily wipe
that out, but it's 50/50 I guess, except for the "January effect". Does
Vanguard get on your case if you trade a fund too much - notwithstanding
the ones with explicitly-stated limitations such as contingent deferred sales
charges and the like ?