Comments on: Balanced Funds in a Taxable Account

By: Doug DePrenger

Doug DePrenger — Sun, 08 Nov 2009 22:21:54 +0000

One thing you could do is create your own low-cost balanced fund by putting 60% into an index mutual fund such as Vanguard S&P 500 (VFINX) or an ETF (SPY) and 40% into a municipal bond fund or 40% into a taxable broad bond ETF such as AGG.

By: Mike

Mike — Tue, 03 Nov 2009 19:17:37 +0000

Rick: Vanguard’s muni funds all appear to look pretty good in terms of costs (0.20% seems to be the standard), but admittedly I haven’t done much comparison shopping, as I don’t have much use personally for muni funds at the moment.

Ziggy75: Depends upon the circumstances. Could you elaborate on the situation in question?

By: Evolution Of Wealth

Evolution Of Wealth — Tue, 03 Nov 2009 17:52:24 +0000

My understanding is it is best to use bond funds in Traditional IRA/401k accounts. Use the equity funds within the Roth portions so that if you do get a big return you will not owe taxes later. Then in taxable accounts use a combination of munis and tax-managed or index funds depending on your preference.

By: Ziggy75

Ziggy75 — Tue, 03 Nov 2009 15:31:07 +0000

What is your opinion on “Placing cash needs in tax-exempt accounts”?

By: Rick Francis

Rick Francis — Tue, 03 Nov 2009 15:17:55 +0000

Mike,

I know municipal bonds are tax efficient- are there any low cost municipal bond funds or ETFs that would work well outside an IRA?

-Rick