I am fortunate enough to have very recently run into the "problem" of having cash that I would need to invest outside of tax sheltered accounts as I have maxed both Roth IRA and 401k. I have an adequate emergency savings and my only debt is a mortgage rate at a satisfactory fixed rate 3.75% that I personally choose not to direct additional principle to.
Over the past few months I've opened a taxable individual account at Vanguard and chose to direct any extra money into the Wellington fund for the sole reason that it basically fits my target AA of 65/35. Admittedly, I did not pull any muscles doing research on this particular fund or the general "taxable accounts" concept for that matter (for this I surely deserve a slap on the hand or perhaps even a stern rebuke
After recently mulling it over again, and delving a bit deeper, I've come across a few questions and concerns that I'd love to get some feedback on from the forum.
1) Question (the big question): Do you think the Wellington fund is an appropriate vehicle to use for a taxable account?
2) Concern: The fee for this fund is 0.30% which appears to be ever so slightly higher than many of the other Vanguard funds.
3) Question: They offer admiral shares once the balance is 50k which lowers the fund fee to 0.22%. When I reach this 50k milestone are there a lot of hoops to jump through to convert to the admiral shares fund? Are there any "gotchas" one should be aware of?
4) Question: Where do YOU put your additional cash that isn't already earmarked for tax sheltered accounts?