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What do you put in taxable? (Poll)

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  • What do you put in taxable? (Poll)

    Different arguments favor different strategies - many like international for foreign tax credit
    - PoF makes a case for US Equities for tax efficiency https://www.physicianonfire.com/international-stock/
    - others including bogleheads and the WCI most trafficked post on asset location argue for bonds in taxable, against traditional wisdom, due to lower rates and expected returns, and the idea that the principal could be exchanged at a later date when rates rise without significant capital gains https://www.bogleheads.org/wiki/Tax-...t#cite_note-14 , https://www.whitecoatinvestor.com/as...go-in-taxable/

    So what is your strategy? (select as many as apply)
    27
    US Equities
    96.30%
    26
    International
    77.78%
    21
    Bonds
    33.33%
    9
    Other
    7.41%
    2

  • #2
    Put some US equities and muni bonds in there when I first started my taxable account because I wasn’t sold on international at that time, and the bond fund offerings in my 403b were abysmal. Now that has switched to Fidelity I have good bond fund options and no good international, so I do some bonds there and total market. After doing my IPS a few years back I decided to add some international, so now that goes into my taxable account. I am no longer adding munis—just holding the ones I’ve got. And I occasionally add VTSAX if my asset allocation gets out of whack.

    So basically just whatever I need that I can’t get it don’t have enough of in my 403b or 457.

    Comment


    • #3
      Mostly tax efficient growth stocks in taxable.
      Value, bonds and REITs in IRA (nonroth)
      small cap value + Value + REITs in Roth
      International is mostly in taxable but some in IRAs

      Comment


      • #4
        The poll is incomplete. There is a difference between taxable bonds and tax exempt bonds in the taxable space. I am primarily US equities in taxable and that is all I would have there from an AA standpoint. But I have a modest stash of funds outside my tax deferred space that I am waiting to redeploy, so I have that in an intermediate term tax exempt bond fund. While the low interest environment does make the issue less pressing, over the long term I prefer bonds in tax deferred since they throw off regular income that I do not need to spend and certainly do not want to pay taxes on in my current marginal tax bracket.

        As for the international equities issue, for me that is a case of theoretical efficiency not standing up to practicality. It is just more convenient to have them in tax deferred and not bother with claiming the foreign tax credits if held in taxable.

        Comment


        • #5
          S&P, QQQ, munis, Mid cap growth, Vtiax, Value, small caps, Apple.

          Comment


          • #6
            VTSAX (and its TLH partners), VTIAX, and VSIAX.

            Comment

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