Sigh, I have one old legacy mutual fund account in taxable that just presented me with the opportunity to pay taxes on about $20k of capital gains, almost half of which are short term. (We are in a pretty high marginal rate, poor us)
I remember when I didn’t know much of anything, except investing was good, and seeing capital gains distributions being reinvested and thinking ‘that’s great! It must be free money!' Ah the blissful relaxation of floating around in my pool of ignorance.
At least now those funds are on their way to Vanguard and VTSAX, where (fingers crossed) they will grow a bit more tax efficiently.
So just a reminder to pause briefly before starting a position in taxable and consider the future.
If any one cares, the fund is T.Rowe Price Science and Technology. It has been a crazy good fund since I started stashing money in it in 2009. Eventually I'll get out of it by donating the shares. Until then I’ll just keep letting them mess with my tax planning.