Tax Consequences With ETFs

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Topic Author
ccmichaelson
Posts: 17
Joined: Fri Aug 06, 2021 8:32 am

Tax Consequences With ETFs

Post by ccmichaelson »

I'm currently using a Wealth Management Company and planning to move my accounts/assets to Vanguard and go for the 3 fund approach. I plan to purchase various Vanguard ETFs like VTI. If I invest say $2 million dollars into ETF's like VOO and/or VTI in 2021, if I do not sale/withdraw anything from this account next year (2022) what tax burden will I incur if any? Today, my WMC trades equities throughout the year and they rack up taxable transactions (e.g. sold x shares of ABC company and purchased y shares of DEF company). I expected to rack up dividend-related taxes but not all the active trading - which is partly why I'm moving away from the WMC.

Thanks in advance!
Last edited by ccmichaelson on Wed Nov 24, 2021 5:01 pm, edited 1 time in total.
nalor511
Posts: 2206
Joined: Mon Jul 27, 2015 1:00 am

Re: Tax Consequences With ETFs

Post by nalor511 »

You have it right, just dividends. I do not like Vanguard customer service(lack of), recommend holding VG ETF at Fidelity
livesoft
Posts: 78169
Joined: Thu Mar 01, 2007 8:00 pm

Re: Tax Consequences With ETFs

Post by livesoft »

One can estimate the dollar amount of dividends that would be expected by a few mathematical calculations based on the dividends paid previously. Then one can estimate the taxes on those dividends by adding them in a "What if?" calculation with your tax-prep software.
Wiki This signature message sponsored by sscritic: Learn to fish.
UpperNwGuy
Posts: 6641
Joined: Sun Oct 08, 2017 7:16 pm

Re: Tax Consequences With ETFs

Post by UpperNwGuy »

ccmichaelson wrote: Wed Nov 24, 2021 4:30 pm I'm currently using a Wealth Management Company and planning to move my accounts/assets to Vanguard
I understand your desire to leave the wealth management company, but why move to Vanguard when you can hold Vanguard ETFs at Schwab or Fidelity?
Topic Author
ccmichaelson
Posts: 17
Joined: Fri Aug 06, 2021 8:32 am

Re: Tax Consequences With ETFs

Post by ccmichaelson »

UpperNwGuy wrote: Wed Nov 24, 2021 5:31 pm I understand your desire to leave the wealth management company, but why move to Vanguard when you can hold Vanguard ETFs at Schwab or Fidelity?
What's wrong with Vanguard? Didn't know Schwab or Fidelity were any better...
UpperNwGuy
Posts: 6641
Joined: Sun Oct 08, 2017 7:16 pm

Re: Tax Consequences With ETFs

Post by UpperNwGuy »

ccmichaelson wrote: Wed Nov 24, 2021 5:36 pm
UpperNwGuy wrote: Wed Nov 24, 2021 5:31 pm I understand your desire to leave the wealth management company, but why move to Vanguard when you can hold Vanguard ETFs at Schwab or Fidelity?
What's wrong with Vanguard? Didn't know Schwab or Fidelity were any better...
Schwab and Fidelity have customer service. Vanguard seems to have abandoned any attempt at customer service.
Post Reply