Author Topic: Taxable Account  (Read 1465 times)

OneCoolCat

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Taxable Account
« on: April 27, 2015, 08:29:33 PM »
Looking for advice on what type of fund to put into a taxable account.  I'm 28 and want to be FI early.  I just started investing year but my portfolio looks like this:

tIRA - 5.5k in VTSMX (VTSAX's lil brother)
rIRA - 5.6k in VTSMX
401k - 2.7k in JDCRX (Large growth)
401k - 2.7k in JDERX (Mid growth)
401k - 200 in TGVRX   (International)

I'm putting in the max into my 401k and am playing catch-up at the moment to make up for January in which I didn't contribute.  Going forward, my 401k allocation will be 45/45/10 respectively.   

I know there are tax efficiency considerations when it comes to what to put in a taxable account but I don't completely understand what is more tax efficient.  If I had to guess, I would say value funds are less tax efficient since I would guess the reinvested dividends would count as a taxable event while a growth fund will have more of the gain realized when the funds are sold.  That's just a guess though.

What do others put in their taxable accounts?

terran

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Re: Taxable Account
« Reply #1 on: April 27, 2015, 08:46:11 PM »
This should help: http://www.bogleheads.org/wiki/Principles_of_tax-efficient_fund_placement

Just to make sure: you're maxing your 401k at $18k for the year, right? Some people think maxing means contributing up to the employer match.

OneCoolCat

  • Bristles
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Re: Taxable Account
« Reply #2 on: April 27, 2015, 11:02:05 PM »
Yeah, putting in 18k.

I'll read the link you provided tomorrow.  Thanks