Announcement

Collapse
No announcement yet.

identical funds in taxable and non-taxable accounts

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • identical funds in taxable and non-taxable accounts

    Any drawbacks to having the same fund (VTSAX) in a taxable and non-taxable account in you have no plans to do TLH but rather just plan to hold forever?

  • #2




    Any drawbacks to having the same fund (VTSAX) in a taxable and non-taxable account?
    Click to expand...


    I have both. No drawbacks aside from the fact that you'll need to be cautious if you TLH in your taxable account.

    Comment


    • #3




      Any drawbacks to having the same fund (VTSAX) in a taxable and non-taxable account in you have no plans to do TLH but rather just plan to hold forever?
      Click to expand...


      No, and it's simpler. When allocating/rebalancing, you just need to include all accounts rather than do your calculations within each account. I would caution you to not choose a particular fund b/c you "love" it but because it is the best fund to fill a particular allocation need in your overall investment diversification plan.
      Our passion is protecting clients and others from predatory advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

      Comment


      • #4




        Any drawbacks to having the same fund (VTSAX) in a taxable and non-taxable account in you have no plans to do TLH but rather just plan to hold forever?
        Click to expand...


        If you own a taxable account, you should most definitely have plans to TLH. With our salaries, it's a $1000+ gift from the government every year, and simple to do.

        With that in mind, I recommend against keeping "substantially identical" funds in retirement accounts that you have in a taxable account. Your investments and dividend reinvestments in the retirement accounts can create a wash sale.

        Don't turn down free money. Swap back and forth between funds that behave the same (VTSAX & VFIAX) and reap the rewards.

        Best,

        -PoF

        Comment

        Working...
        X