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Optimal investments for taxable account

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  • Dreamgiver Dreamgiver 
    Participant
    Status: Physician
    Posts: 892
    Joined: 03/09/2017

    Sorry, did not see what specific questions you have. If it is just the title, low ER, low turnover, passive index funds (‘total stock market’) Split domestic/international according to your plan. Can add munis if you wish but would not do bond funds due to tax drag.

    #248193 Reply
    mb(a)CPA mb(a)CPA 
    Participant
    Status: Accountant
    Posts: 25
    Joined: 04/01/2019

    Remember that in a taxable account you get the benefit of the Foreign Tax Credit for foreign withholding taxes on dividends, while in a tax sheltered account this is completely lost.  As such there would be value in having more of your international stocks in taxable and more of your U.S. ones in tax-sheltered accounts.

    #248324 Reply
    Liked by AZPT

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