However, I am wondering if that is really the right approach in early retirement. TISM actually has a significantly higher distribution yield than the other two, but it's offset by the foreign tax credit. But that is actually worse from an ACA subsidy perspective - the distribution goes above the AGI line and foreign tax credit goes below. My understanding is that ACA subsidy is based on AGI.
I have several large windfalls from the sales of various other assets that will occur before early retirement, so I do have some room to rearrange things without creating unnecessary tax costs.
From the Triceratops sheet:
https://docs.google.com/spreadsheets/d/ ... edit#gid=0
Code: Select all
VTI VBR VXUS
Distribution Yield: 2.03% 1.96% 3.39%
Tax Cost Ratio: 0.13% 0.18% 0.14%
Thanks,
Mike