My apologies if this has been brought up in an earlier post, but I recently started contributing to a couple of funds at Vanguard. This particular account and holdings are taxable and intended for additional savings outside of 401k and IRA contributions which are being maximized. We plan on using these funds 10 or more years from now.
I have not yet established a cost basis method for my Vanguard account, but I noticed that Vanguard is offering 3: Average Cost, specific identification and first-in, first-out.
I plan on establishing a portfolio of about 4-5 index funds which would come close to the Life Strategy Growth fund, however I would like to make the final call on asset allocation, personally preferring a little more US exposure.
With a long term investment strategy for this type of taxable account, would you kindly provide me with your opinions on what cost basis method you would setup (and a short why)?
Much appreciated!
Matt