3-Fund Portfolio, What to place in taxable account?

[S.Ryon]

Hello WCI Forum-

We currently invest using the 3-Fund Portfolio.... our 3 funds are FXAIX, FTIHX and FXNAX. We buy and hold these funds in a Solo 401k, HSA and this month will add a taxable account. ETA: We have the same 3 funds inside 2 ROTH IRA's as well, maxed out for 2022.

Which fund is best for a taxable account? We will end up with ~$36,000 inside of it annually if that matters, hoping to minimize the taxes.

Thank you in advance!

[Tim]

FXAIX, FTIHX
Pick the S&P 500 or Intl. Which do you think will throw off more dividends? With Intl you might get a small amount of foreign tax credits. Not the bonds.
I would suggest not keeping all accounts with equal distributions If you are planning on doing TLH , keeping a separate fund in the taxable will simplify your process. You will want to rebalance in the solo 401k.

[S.Ryon]

Tim Thank you! We rebalance with every contribution but not necessarily across accounts. Some accounts have 1 of those funds or 2 but the entirety of all accounts is balanced.

I was planning on allocating the first dollars to the taxable to keep it in 1 fund and then distribute the remaining to others.

[Lordosis]

Peds is gone so I will post this for him

[xraygoggles]

Peds is gone so I will post this for him

What happened to him?

[VentAlarm]

What happened to him?

Seconded.

[Lordosis]

What happened to him?

Nothing that I know of. Just stopped posting

[Lithium]

I vote domestic stock due to the complexities of F1116

[Tim]

Peds is gone so I will post this for him

Last post by Peds. Followed by the rules.
“End of politics.”
Voluntary retirement from the Forum. I can only wish the best for Peds.

[Tangler]

Peds added some great information.

Peds was insightful, intelligent, and offered succinct relevant posts.

We had some significant disagreements.

I wish the best for Peds also.

No reason to hold a grudge.

[Tangler]

For taxable accounts you probably want low turnover low dividend producing stock index funds.

The link Lordosis provided is a good one.

Many put bonds in IRA and save stock index funds for taxable and Roth.

[WorkforFIRE]

Nothing that I know of. Just stopped posting

wow. We lost a good one

[Auric goldfinger]

Do not put the international in taxable. You may get minor credits for foreign taxes paid( and the cpa will charge an extra $100 for the form1116). But more importantly the tax implications of non- qualified dividends- which international funds stubbornly declare. Many other reasons… just not as tax efficient as an S&P