I'm in the fortunate position of having already fully funded my Roth IRA while also staying on track to max my 401k contribution for the year. Since I need to wait until the next open enrollment to switch to an HSA-eligible High Deductible Health Plan, it seems I'm running out of tax-advantaged space and am nearing the point of opening a taxable account.
Since I've been happily living in a mostly tax-advantaged world to-date, I am not familiar with the tricks of the trade when it comes to taxable account strategy.
My domestic stock and bond allocations are both in my tax-advantaged funds. I've determined that I do want international stocks in my portfolio, and I understand that they would make most sense in a taxable account (according to
this Bogleheads page). I'm targeting one of Vanguard's Total International Stock funds (VGTSX / VTIAX / VXUS).
Since I don't have enough to go straight to Admiral Shares, should I start with the Investor Shares and later convert to Admiral? Or should I jump straight into the ETF version?
Does conversion from Investor to Admiral Shares in a taxable account create a taxable event, along with more cost basis tracking?
Should I allow dividends to reinvest automatically or ...?
Any other taxable account tips?
Let me know if you need more info. Any help is appreciated!