The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: silvia on July 10, 2015, 10:11:50 PM
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Please advise where I can invest 350k in Vanguard funds (ETF or /and investor mutual funds) for the BEST TAX advantage. I won't need the money for at least 5 to 8 years. I have read about qualified dividend funds. I am thinking of Vanguard 500 index and Total Stock index. Would this be a good idea? Would ETF be a wiser decision?
Thanks in advance.
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So what happens after 8 years? Do you need the money then? If so, I'd it needed because you plan on retiring around that time frame, or because you want to make a purchase with it, say a house?
More concisely phrased, what is your actual goal with this money (in how it's spent, not how it's invested)?
There are no differences in the rates at which Vanguard ETFs and Vanguard mutual funds are taxed.
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From your other thread
http://forum.mrmoneymustache.com/ask-a-mustachian/will-i-be-ready-to-retire-in-2-years/msg726983/#msg726983
It sounds like you are going to sell your house to liquidate this $350k. And are trying to retire around that same time. Is the idea you are trying to have this money provide supplement income once your $970/mo runs out in 10 years?
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Forummm-
Exactly, I plan to supplement the 350k liquidated from selling my house (probably next year) for income after the $970 per month runs out. With the sale of my house, I plan to purchase with cash a condo in a senior community. I do not plan to touch the $500k already in my 403b and 457 account.
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Well then I would suggest putting it all in something easy like the Vanguard Target Retirement 2025 Fund. It's a very conservative fund that moves you more and more conservative as you approach 70, and then stays 70% bonds after that. With your pension and no mortgage and another $500k in retirement accounts, on top of this $350k, you should do quite well.
When the time comes, open an account at Vanguard and the website will walk you through how to move your money over.
What do you have your $500k invested in?
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All Vanguard funds for 403b
International Value
Small-cap Value index
Total Bond Market index
Total Stock Market index
REIT index
about 1/3 of total invested in TiiAA -Cref for 457 account