And while I normally recommend bonds in taxable, this is the exception. You have more than twice the tax cost of other investors for stocks in a taxable account, but no more tax cost than anyone else on NY munis. (The tax cost on munis is not zero; it is the difference between the yield of muni and taxable bonds of comparable risk.)Why are you trying to avoid bonds in taxable? With a 37% fed tax bracket, and (based on your name) being based in NYC, you might be paying 34.45% on even qualified dividends (and nearly 50% on non-qualified dividends, etc.). That's a hefty tax drag on even tax-efficient stock funds, so I'd want to get as much of that as possible into tax-advantaged accounts.I am 25-30 years out from retirement. Our AA calls for 10% bonds at this point. We are in the 37% fed tax bracket. I am trying to avoid bonds in taxable, so 401k is my other option.
Statistics: Posted by grabiner — Sun Sep 15, 2024 11:15 pm — Replies 6 — Views 273