Having just tax loss harvested IXUS I appreciate having them separately, at least in taxable. YMMV. I don't find rebalancing when I do RMDs all that hard, and I don't need to do much other rebalancing.Whatever small tax benefit I'm losing from the foreign tax credit is something I'm willing to forego to have US vs ex-US auto-rebalanced to market weight for me via VT.
In a Traditional (401k or IRA) you'll pay taxes on that income eventually at Ordinary Income tax rates rather than dividend rates in a taxable account (+ FTC). So there are a lot of moving pieces to that analysis. I think overall it comes out in favor of holding exus in taxable, but again, a lot of balls, and a lot more complicated than people expect. I don't think it makes a staggeringly huge difference either way.
Statistics: Posted by Da5id — Tue Dec 24, 2024 1:50 pm — Replies 7760 — Views 1773843