munnix wrote:Recently received my annual report from the organization that manages my 403(b). They are charging .11 annually for the balance of my account. I'm fully vested in Vanguard's Target Retirement 2015 (VTXVX) fund. This has me paying .28 for the fund, which to me still seems like a bargain. I just wonder if it truly is? Would it make better economic sense to put my funds, beyond my employer's match in a taxable (Admiral shares) Vanguard fund? My wife and I both have Roths, which we have already maxed out for 2013. I'm at a 15% marginal tax rate.
Would appreciate some Boglehead insights. Just a little flustered to think this one through clearly.
I've been reading the forum regularly for the past five or so years, just rarely post. Thanks for all of the great advice and view.
theduke wrote:I can't answer your question, but will add a little more information. If you invest in a taxable account and stay in the 15% tax bracket, then you will pay no taxes on long term capital gains or qualified dividends. A stock fund like Vanguard Total Stock Index pays qualified dividends, but a bond fund like Vanguard Total Bond Index Fund is not qualified dividends. So if you invest in the Target Retirement 2015 Fund with it's bond proportion in a taxable account, it may not be the best choice.
edit to add. State taxes could vary.
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