Advice for taxable investing

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Tralvo
Posts: 1
Joined: Wed Jan 09, 2019 10:24 pm

Advice for taxable investing

Post by Tralvo » Wed Jan 09, 2019 10:43 pm

Hi,

I have been following this forum since a while but never posted. I hope you can clear my mind about what to do with some money I would like to invest.
Wife and I are in our thirties.
Emergency fund 3 months of income
Retirement contributing 20% of gross income in low ER funds between 401k and Roth IRA.

Tax rate: 22% as of 2019
State tax: 8.89%

I have around 50’000$ that I would like to invest, half for a long term goal:15 years. Other half for some more immediate things coming in the next 5-10 years.

I am struggling to decide if it is worth investing in a Vanguard Total Stock Market VTSAX and a tax exempt bond fund VWITX. Or if it wouldn’t matter, because of my tax rate, and I could just go with a normal bond fund.

Would a CD ladder also be a good option for my situation?

Living Free
Posts: 155
Joined: Thu Jul 19, 2018 7:31 pm

Re: Advice for taxable investing

Post by Living Free » Thu Jan 10, 2019 9:36 am

I'd consider just investing exclusively in the broad market stock index funds in taxable for tax efficiency purposes. So VTSAX and/or the total international stock index funds.
Then increase your bond or cash holdings in your 401k to compensate.
See the following:
https://www.bogleheads.org/wiki/Placing ... ed_account
https://humbledollar.com/2017/08/who-needs-munis/

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