After some good advice from a previous thread, my wife and I are interested in investing in a taxable account (outside of our 401Ks and Roths). I have been trying to figure out the tax implications of these, but haven't found any concise information. Here would be the plan... Invest in a combination of low ER index funds (stocks, bonds) through vanguard and reinvest all dividends. This money would not be touched for several years, and likely the majority of it will not be touched until retirement. So my question is, when/what taxes are paid at different times? Would there be a yearly tax burden on dividend interest and capital gains even if reinvested? When money is pulled from the account, I'm aware that there are taxes and capital gains/losses at that time.
Any information or links to articles would be greatly appreciated!