jbyoun1990 wrote:I want to invest in this index fund BEFORE New Years.... but this fund seems to do their distribution every 6 months: 1 during june and one like 12/31. I just don't want to invest right before 12/31 and then pay anything unnecessary.
Check with the fund company for the "ex-dividend date", which is the day after the "record date" for a mutual fund. If you hold the fund on the record date, you receive the dividend. If you buy on the ex-dividend date or later, you do not have receive the dividend.
Most Vanguard funds have already gone ex-dividend, but there are a few with a record date of 12/27 and ex-dividend on 12/28: Vanguard Estimated 2012 Year-End Distributions
From your additional post, I see you are considering LifeStrategy Moderate Growth, which does have a record date of 12/27 and will distribute a capital gain (from its bond holdings). But even if you wait to buy until 12/28, it's not a good idea to hold a balanced fund in a taxable account, as you can't switch to a different allocation later without selling the original fund for a capital gain.
If you want to hold 60% stock in your taxable account, it makes more sense to buy separate stock and bond funds; you will then have little tax cost if you need to sell bonds to buy a different type of bonds, or to hold bonds in a different account, or to spend money from the bond portion of your account.