Hi all,
I understand that tax inefficient investments should be held in tax advantaged accounts. Right now, I have a Vanguard REIT fund in my brokerage account. My thought process is that I would like access to some income (producing funds) before 59 1/2. Right now I only have about 5k in this fund. Do you think that the tax consequences will make my thinking not valid (assuming I am at a 25% tax rate)?
The other option is to have my Roth IRA consist of only the REIT fund. I just opened the Roth IRA, so I have a tad over 1k in it although I hope to max out by end of year. I'll admit to being lazy and using a target fund for this account.
I do not own a home, nor expect to in the near future.
If it matters, I have what I feel is a solid 401k portfolio with Vanguard that recently hit over 150k (first year I come close to hitting the contribution cap) - hooray!.
I am planning on speaking to a Vanguard advisor in the next few months; I want to wait and see what the adjustment to my very recent commitment to the mustachian lifestyle is like. I think it will allow me to ask more informed questions, especially regarding savings contributions.