The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: onecoolcat on April 27, 2015, 08:29:33 PM
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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?
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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.
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Yeah, putting in 18k.
I'll read the link you provided tomorrow. Thanks