Re: tax implications
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One of the great strengths of passive investing (index and ETF funds) is tax efficiency. Investing in an index fund outside of a tax deferred account such as an IRA or 401k is almost as efficient as doing it inside. Last time I looked I guessed the difference was less than .5% per year, but it all depends upon your assumptions on future gains and turnover.
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DC - thanks for the info. question though...why do ppl recommend Vanguard/Fidelity index funds for Roths if you want your tax-inefficient investments protected in these. I'm dumb so feel free to use basic terminology.
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