new taxable account

[Otodoc]

i max out 401K, HSA, backdoor roth, and put a decent little chunk in 529s.  Now its time for taxable.  I actually have a scottrade account that i have had for years,  learned much about how bad i was at picking stocks, especially the penny ones!  Scottrade sold to TD ameritrade, but i'm not sure i want to use them.  I have roth at vanguard and 401K at etrade.  I keep reading all the bad stuff about vanguard customer service and messed up tax forms, etc.

I need a taxable account that has

1. low fee mutual funds- dont want to do ETFs.  Only need TSM, total int'l, and a good muni fund

2. commission free trades on said mutual funds

3.  at least decent customer service

4.  good record keeping with ability to sell certain lots at a time--so can do tax loss harvesting easily

This is for long term savings (>10 years)

 

just tell me which brokerage to use.  i'm tired of thinking about it.

Also, there are like 5 different duration of muni funds.  which one should i pick?

[janettebournes]

Otodoc wrote:

i max out 401K, HSA, backdoor roth, and put a decent little chunk in 529s.  Now its time for taxable.  I actually have a scottrade account that i have had for years,  learned much about how bad i was at picking stocks, especially the penny ones!  Scottrade sold to TD ameritrade, but i’m not sure i want to use them.  I have roth at vanguard and 401K at etrade.  I keep reading all the bad stuff about vanguard customer service and messed up tax forms, etc.

I need a taxable account that has

1. low fee mutual funds- dont want to do ETFs.  Only need TSM, total int’l, and a good muni fund

2. commission free trades on said mutual funds

3.  at least decent customer service

4.  good record keeping with ability to sell certain lots at a time–so can do tax loss harvesting easily

This is for long term savings (>10 years)

 

just tell me which brokerage to use.  i’m tired of thinking about it.

Also, there are like 5 different duration of muni funds.  which one should i pick?

Click to expand...

I haven't had any issues with Vanguard customer support or messed up tax forms

My taxable account (which comprises the bulk of my retirement funds) is split 1/3, 1/3, 1/3 between TSM, total international and intermediate term munis. It also seems to fulfill all 4 of your criteria. I did some tax loss harvesting at the beginning of last year and it worked out just fine. All transactions download nicely to Turbotax. I picked intermediate term to split the difference in duration for the muni fund.

[Hatton]

No problems with Vanguard.  I also use the intermediate muni fund.

[PhysicianOnFIRE]

Otodoc wrote:

which one should i pick?

Click to expand...

I've been happy with Vanguard. No issues in 5+ years I've been with them.

Fidelity's expense ratios on the "Three Fund Portfolio" mutual funds are ever so slightly lower than Vanguard's and Schwab's are a tiny bit cheaper yet. But you want to be told what to do, so I'd probably stick with Vanguard if I were you.

[SomeRandomGuyOnline]

I haven't had an issue with Vanguard in terms of customer service or tax forms. Based on your criteria, I would vote Vanguard as well.

 

Like hatton1, I also use an intermediate term muni fund.

[janettebournes]

PhysicianOnFIRE wrote:

Otodoc wrote:

which one should i pick? 

Click to expand…

I’ve been happy with Vanguard. No issues in 5+ years I’ve been with them.

Fidelity’s expense ratios on the “Three Fund Portfolio” mutual funds are ever so slightly lower than Vanguard’s and Schwab’s are a tiny bit cheaper yet. But you want to be told what to do, so I’d probably stick with Vanguard if I were you.

Click to expand...

I think your link for the 3 fund portfolio is incorrect

[DoubleMDs]

Hatton and others why did you choose the intermediate fund? Why not high yield? Yes there is a little more volatility but still provides diversification from equities? Or why not VTEAX, their total muni bond index which has admiral shares for only 10,000 vs the 50,000 admiral shares starting requires for their intermediate and high yield? Curious why folks would choose intermediate term at investor shares if those others are available?

[SomeRandomGuyOnline]

DoubleMDs wrote:

Hatton and others why did you choose the intermediate fund? Why not high yield? Yes there is a little more volatility but still provides diversification from equities? Or why not VTEAX, their total muni bond index which has admiral shares for only 10,000 vs the 50,000 admiral shares starting requires for their intermediate and high yield? Curious why folks would choose intermediate term at investor shares if those others are available?

Click to expand...

Sorry I should clarify. I use the California intermediate term tax-exempt muni fund. I figured I'd take advantage of both federal and state income tax breaks since I live in Cali. But to honest, I haven't done the math to see whether there is any advantage over the high-yield tax-exempt fund.

[Hatton]

Hi yield bonds are also called junk bonds.  They will act like a stock in a bad market.  I have owned them in the past.  I think it is better to own a diversified portfolio of stocks and keep the bonds simple.  I also have a small position In a short term bond fund at vanguard which I consider part of my mmf/ cash portion.  I used to own primarily individual muni bonds but I like the simplicity and diversification of the fund.  The intermediate fund seems to be a good hedge.

[Hatton]

I guess I am guilty of complacency about vteax.  I think this is fairly new.  I got into the intermediate muni fund a few years back when I actually redid a lot of stuff and got an actual financial plan from vanguard.

[DoubleMDs]

All sounds reasonable. The VTEAX is appealing for the low cost to get admiral shares. Seems to fit with the more general ideology of broad indexing, but bonds are a whole different ball game from equities in that regard.

[Otodoc]

thanks for the input.  i'll stick with vanguard for the taxable account.  vteax has about same average duration as the intermediate muni fund and easier to get admiral shares.  think i'll go with that one.

[PhysicianOnFIRE]

janettebournes wrote:

I think your link for the 3 fund portfolio is incorrect

Click to expand...

It sure was! I fixed it.

[WallStreetPhysician]

Otodoc wrote:

i max out 401K, HSA, backdoor roth, and put a decent little chunk in 529s.  Now its time for taxable.  I actually have a scottrade account that i have had for years,  learned much about how bad i was at picking stocks, especially the penny ones!  Scottrade sold to TD ameritrade, but i’m not sure i want to use them.  I have roth at vanguard and 401K at etrade.  I keep reading all the bad stuff about vanguard customer service and messed up tax forms, etc.

I need a taxable account that has

1. low fee mutual funds- dont want to do ETFs.  Only need TSM, total int’l, and a good muni fund

2. commission free trades on said mutual funds

3.  at least decent customer service

4.  good record keeping with ability to sell certain lots at a time–so can do tax loss harvesting easily

This is for long term savings (>10 years)

 

just tell me which brokerage to use.  i’m tired of thinking about it.

Also, there are like 5 different duration of muni funds.  which one should i pick?

Click to expand...

Fidelity would be a good option, but I would use ETFs over their mutual funds with them -- it is more tax-efficient. Fidelity has many commission-free ETFs. Vanguard's ETFs and index funds have equal tax-efficiency, but it seems like you are not interested in Vanguard.