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Inheritance money and taxable investments

Posted: Sun Jan 21, 2018 11:39 am
by neveragain
I received some inherited money. I'm going to max out my IRA and 529 plans this year. I'd also like to put 10K in an index fund such as Fidelity FUSVX. I have this fund in my IRA and it seems to do pretty well. I'm wondering if the tax liability would offset any gains I would receive from these types of funds, though.

My CPA recommended that I look into municipal bond funds.

Re: Inheritance money and taxable investments

Posted: Sun Jan 21, 2018 11:50 am
by retiredjg
Broad stock index funds are pretty tax efficient. For just this reason, the most common suggestion. around here for a taxable account would be a total stock index and/or a total international index.

If you need bonds in the taxable account, if you are in a higher tax bracket, the bonds should be tax-exempt.

I suggest you use Fido's Total Stock Index instead of the 500 index because that eliminates the possibility of a wash sale if you sell the fund held in taxable at a loss.

Re: Inheritance money and taxable investments

Posted: Sun Jan 21, 2018 8:46 pm
by neveragain
Thanks, I will check out Fido's total stock index.