I'm trying to simplify the investments my wife and I have. I'm still learning about investing (currently reading "The Bogleheads Guide to Investing") but still have a couple questions. Right now we max our 401k's and Roth IRA's, but we want to start a taxable account this year and slowly add any surplus money to it.
On to my question..
I hear things about tax efficiency and keeping certain investments in our tax sheltered accounts (401k, Roth IRA) and others that are better fitted for taxable accounts. I'd like to get this right the first time, so is it a bad idea to have "Vanguard Life Strategy Growth Fund" (VASGX) in our taxable account?
Right now our 401k's are both in "Vanguard Target Retirement 2050 Fund", and both of our Roth IRA's are VTSAX. I was thinking that we're heavy on stocks right now so was thinking I'd switch our Roth IRA's to VASGX, and all taxable investments also in VASGX for simplicity. Would this be a mistake as far as tax efficiency goes?
A little about us:
Both 30 yr old
Combined Income = $176,500
Net Worth = ~$200,000
Debt: Just mortgage, $194k @ 3.75% 15-yr loan. Home value = $215k
Current Combined Retirement Assets - $113,500
Taxable – None currently, plans to open this year @ Vanguard
His 401k @ Vanguard – $28,750
His Roth IRA @ Vanguard - $13,514
Her 401k @ Vanguard – $45,569
Her Roth IRA @ Vanguard - $13,529
Her Traditional IRA @ Vanguard (From previous job, no longer contributing) - $6,310
Thanks for any info you can provide!
-CBR