Author Topic: Tax Coordinated Dividends  (Read 1237 times)

Mustachio Bashio

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Tax Coordinated Dividends
« on: December 29, 2016, 09:00:02 AM »
I'm sure this has been posted about somewhere on here, but I can't seem to get the search to work to find the thread.

I was wondering if anyone's using the tax coordinated dividends feature from Betterment, and if so, are there certain accounts you'd leave out of it?  Are there benefits to using it on some but not other accounts?  Right now I have my Roth, Sep, and individual taxable account in there, but I'm not sure if that's the way to go.

Some insight for this beginner mustache would be great!  Thanks!

seattlecyclone

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Re: Tax Coordinated Dividends
« Reply #1 on: December 29, 2016, 09:50:11 AM »
Just as with tax-loss harvesting, their tax-efficient fund placement is something you can do pretty well on your own. Seriously, just follow the chart on the Bogleheads page about the topic and you'll do almost as well as their algorithms and you won't have to pay Betterment's management fee every year from now on. Educate yourself, and you won't need to pay someone a percentage of your ever-growing stash to do this stuff for you.

As to your question about whether it makes sense to leave some accounts out of it, I don't think so. The benefit of placing your assets in a tax-efficient way is real, so you'll do well to apply this across as much of your portfolio as possible.

Mustachio Bashio

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Re: Tax Coordinated Dividends
« Reply #2 on: December 29, 2016, 12:02:07 PM »
Ok great, thanks for the info.  Yea, I want to eventually move stuff over to Vanguard and manage it myself, but just slowly easing into it now.  Only wish I had found this community and heard about FIRE sooner!