coldman wrote:I have maxed out my 401K and Roth IRA. - What tax efficient Vanguard mutual funds would be the best as a I try to have the most efficient portfolio? Please suggest your idea of the best funds to do this.
Total Stock Market Index Fund and Total International Index Fund are two funds that should always be considered for taxable accounts. Here's why:
* Very diversified (lower risk)
* Converts tax-inefficient funds into tax-Efficient funds.
* Low turnover
* No style drift
* No front running
* Earlier qualification for Admiral status
* Consolidates to fewer funds
* Less rebalancing
* Simple to understand and maintain.
* Low cost
* Contributions and withdrawals do not unbalance the portfolio.
* On the "Efficient Frontier"
* No worry about under-performing the market.