Tax-Efficient Portfolios for Vanguard Investors

These portfolios are designed to limit the drag of expenses and tax costs. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=56249&elqTrackId=b6cba00898dd4a8fa0c8a16162981743&elq=dd18186228104b84b42208c589f13343&elqaid=56249&elqat=1&elqCampaignId=28612) [Improving Your Finances] Improving Your Finances with [Christine Benz]( [Christine Benz] One of [my biggest mistakes as an investor]( has been with asset location—putting tax-inefficient investments inside of a taxable brokerage account. Holding Vanguard Primecap Core in my taxable account has led to frequent capital gains distributions and related tax bills. It’s not a disaster in that we’ve effectively prepaid our tax bills on the appreciation; our tax bills will be lighter when we eventually sell. But if you know anything about taxes you know that prepaying them usually isn’t something you should volunteer to do. If I were starting from scratch, I’d pay more attention to tax efficiency with my taxable portfolio, adopting an ultra-simple mix like the ones featured in [this article](. I shared 12 Vanguard portfolios altogether—[three exchange-traded fund]( and [three mutual fund portfolios for retirees]( as well as three ETF and [three mutual fund portfolios for accumulators](. Speaking of retirement savings, I enjoyed [Ed Slott’s unpacking of the Department of Labor’s fiduciary rule and its implications for 401(k) rollovers](. The rule is set to go into effect this coming September, and there’s still a lot of confusion about what it entails. Like Ed, I believe that rolling over [old 401(k) assets]( into an IRA—and getting away from the extra costs that 401(k)s sometimes entail—is often the right call, but there may be some reasons to stick around in an old 401(k). Elsewhere on the retirement savings front, [Amy Arnott examined the steps that Gen Xers can take to pay catch-up]( if they’re hurtling toward a shortfall. She shared four tangible strategies to make up for a meager retirement balance. Finally, Amy and I enjoyed our conversation with author and blogger Brian Feroldi, who shared his biggest investing mistakes and the [key ways that small investors like us can gain an edge]( over professional investors. (TLDR: Take advantage of your long time horizon!) I always learn from Brian, and I hope that you’ll enjoy the discussion, too. With warm regards, Christine Benz [Tax-Efficient Portfolios for Vanguard Investors]( These 12 portfolios—6 for retirees and 6 for retirement savers—are designed to minimize investment expenses and tax costs. [Explore Now]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] [Do as I Say (Not as I Do)]( On my failings as an investor. [Read More]( [How the DOL’s Fiduciary Rule Affects Your Old 401(k)]( Tax and IRA expert Ed Slott runs down the key options for managing your retirement accounts. [Watch Now]( [How Gen X Can Catch Up on Retirement Savings]( Even if you’re off to a late start, there’s still hope for your 401(k). [Read More]( [Brian Feroldi: ‘The Biggest Edge That Individual Investors Have’]( The author and stock analyst discusses who should invest in individual stocks and who should index and the biggest mistakes he’s made with his own portfolio. [Listen Today]( [Tax-Efficient Retirement-Bucket Portfolios for ETF Investors]( These tax-efficient portfolios are geared toward retirees who are seeking simplicity and balance. [See the Portfolios]( [Tax-Efficient Retirement-Bucket Portfolios for Vanguard Investors]( The indexing giant’s topnotch tax-managed, index, and municipal-bond funds make tax-friendly portfolios a cinch. [See the Portfolios]( [Tax-Efficient Retirement-Saver Portfolios for Vanguard Investors]( A mix of tax-managed, index, and munis should reduce the drag of taxes on all-Vanguard portfolios for accumulators. [See the Portfolios]( [What to Do With Your 401(k) When You Retire]( Roll it over or stay put? Six questions to help you decide. [Find Out More]( Get Top Stock Picks and Market Insights Every Week on The Morning Filter. Every Monday morning, Susan Dziubinski sits down with Morningstar Chief U.S. markets strategist Dave Sekera to discuss what's on his radar, new Morningstar research, and stock picks or pans for the week ahead. [Watch Now.](morningstar/streams?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=56249) Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2024 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602