Preferences While Investing in Taxable Accounts

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Preferences While Investing in Taxable Accounts

Postby coldman » Fri Apr 05, 2013 4:32 am

When you look at investing in taxable accounts what are your preferred Vanguard funds or ETFs? What strategies do you use? I have come to realize I need to start investing more in taxable accounts. Currently I have Berkshire stock and the Vanguard High Yield Tax Exempt Bond Fund. That is not going to cut the mustard if I want to get further ahead. Please share your strategies you use and ways you minimize taxes and stress. I am almost ready to bite the bullet. I have read a lot, but I get more out of people's real life experiences and suggestions. Thank you for your input.
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Re: Preferences While Investing in Taxable Accounts

Postby trasmuss » Fri Apr 05, 2013 5:55 am

I use the Total Stock Market fund and the Index 500 fund in my taxable account (different purposes). I have been pleased with both when tax time comes. Note: with the current tax laws you will not pay any federal tax on the dividends if you are in the 15% tax bracket or below. I use Total Bond in my tax deferred accounts (along with Total Stock and Total International).

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Re: Preferences While Investing in Taxable Accounts

Postby Grt2bOutdoors » Fri Apr 05, 2013 8:52 am

I use the Total Stock Market Index, Total International Index and Intermediate Tax Exempt.
I'm now thinking of using a litte frosting in the form of VSS and VBR.
"Luck is not a strategy" Asking Portfolio Questions
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Re: Preferences While Investing in Taxable Accounts

Postby livesoft » Fri Apr 05, 2013 9:00 am

I use VEU since Total Int'l wasn't invented as such when I bought VEU years ago. That is complemented with SCZ and VSS.
Also have large positions in VBR and VSS.
I have VLCAX (large-cap index) since 2009 when I tax-loss harvested Total US Market index.
I have not added to these positions in a number of years.

I am sure it all depends on what else is going on in one's portfolio.
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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Re: Preferences While Investing in Taxable Accounts

Postby pork chop » Fri Apr 05, 2013 9:10 am

I have VG total stock, total international, and tax managed small cap.
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Re: Preferences While Investing in Taxable Accounts

Postby jimkinny » Fri Apr 05, 2013 11:06 am

Check out this fine article on the Wiki re tax efficient fund placement.

http://www.bogleheads.org/wiki/Principles_of_Tax-Efficient_Fund_Placement


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Re: Preferences While Investing in Taxable Accounts

Postby bottomfisher » Sat Apr 06, 2013 9:50 am

When you look at investing in taxable accounts what are your preferred Vanguard funds or ETFs? What strategies do you use? I have come to realize I need to start investing more in taxable accounts. Currently I have Berkshire stock and the Vanguard High Yield Tax Exempt Bond Fund. That is not going to cut the mustard if I want to get further ahead. Please share your strategies you use and ways you minimize taxes and stress. I am almost ready to bite the bullet. I have read a lot, but I get more out of people's real life experiences and suggestions. Thank you for your input.


I started invested in taxable account about 2 1/2 years ago. I initially purchased Vg Long Term Municiple bond since I had no bond exposure at that point and these funds were to be utilized as back-up to regular emergency funds; but still earmarked for retirement. As the fund gradually increased, I came to the same conclusion you did "That is not going to cut the mustard if I want to get further ahead." So I left that fund in place but have contributed to it infrequently. Instead I started putting additional funds in Vg Total Stock Market and have been happy with this decision especially recently. I have an additional Vg Tax Managed Balanced fund earmarked for a special purpose that has no specific timeframe for needing the funds. I have a fair amount in student loans. And have recently lowered my expectations of intermediate term returns. So now I'm contributing less to the taxable and starting to more aggressively address the student loans.
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Re: Preferences While Investing in Taxable Accounts

Postby Default User BR » Sat Apr 06, 2013 12:37 pm

Taxable should be a portion of the overall portfolio. As such, it should hold the assets that portfolio construction indicates that it should. As that construction will vary widely depending the individual's needs, it's nearly impossible to give advice without knowing the specifics.

Post a portfolio review following the guidelines provided at the top of the forum.


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