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So I've posted before but am now opening up an individual taxable Vanguard account for savings/retirement. I've already maxed out my 401K etc.. and need help with picking the right Vanguard. I make about 600K a year and am in a high tax bracket. I really want something easy I can put money into and not have to rebalance or manage much myself. I've been looking hard at the flowing types of investments: Lifestrategy Moderate Growth, Wellington, Target 2045 and Tax Managed Balanced Fund. I've been looking a lot lately at the last one because I heard it may have some tax advantage but what would be the disadvantage? Someone said "don't do international." Would I have to rebalance or manage the tax managed balance fund? Thanks

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rated:
I don't understand what you mean by "manage the fund"?  You decide to buy it, you decide to sell it, there really isn't much "managing" to do in between.

And if you want the fund to be XX% of your overall investment, yes you'll have to buy or sell shares periodically to rebalance your portfolio and maintain that percentage.

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I did the 2045 Target fund, but switched to Wellington Fund (Investor) when I decided (rightly or wrongly, who knows) that I wanted something that was slightly more conservative and with a longer track record.

Not sure if you can edit the title of your post, but it should probably say "Best Vanguard Fund."

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intotheblue said:   So I've posted before but am now opening up an individual taxable Vanguard account for savings/retirement. I've already maxed out my 401K etc.. and need help with picking the right Vanguard. I make about 600K a year and am in a high tax bracket. I really want something easy I can put money into and not have to rebalance or manage much myself. I've been looking hard at the flowing types of investments: Lifestrategy Moderate Growth, Wellington, Target 2045 and Tax Managed Balanced Fund. I've been looking a lot lately at the last one because I heard it may have some tax advantage but what would be the disadvantage? Someone said "don't do international." Would I have to rebalance or manage the tax managed balance fund? Thanks
  
Call vanguard and get their advisor service - i believe it is free over $50K.   And i don't think it has any fees.   You should be able to talk to one of their advisers ....

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Glitch99 said:   I don't understand what you mean by "manage the fund"?  You decide to buy it, you decide to sell it, there really isn't much "managing" to do in between.

And if you want the fund to be XX% of your overall investment, yes you'll have to buy or sell shares periodically to rebalance your portfolio and maintain that percentage.

  
Agree with what he said.

OP indicated he's opening a standard taxable account to dump this money into, however I guess if I were in the highest tax bracket, I would try to figure what percentage of the total amount would be put into tax-free funds and start from there. 

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intotheblue said:   So I've posted before but am now opening up an individual taxable Vanguard account for savings/retirement.
 

  Why the new FWF id?

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If OP isn't trolling, at 600k a year you would think OP knows what to do, or at least knows who to contact to do it for them..

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MrSamsung said:   If OP isn't trolling, at 600k a year you would think OP knows what to do, or at least knows who to contact to do it for them..
Ugh, I missed that the first time I read through the OP. I probably wouldn't have bothered replying had I seen it.

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At $600K salary, we should be asking you for advise not you asking us!!!

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Head over to the bogleheads forum and ask there. With the amounts of money you should be able to sock away spend a couple hours of your time to understand investments well and also understand things like tax efficient investing. You already are on the right track going to Vanguard now learn to invest into a simple and inexpensive portfolio.
I would not invest into Target 2045 or Wellington. You are best off
a) define your investment strategy (stock / bond mix, e.g. 70/30, look at how much exposure to international you want, etc.)
b) look what to put into your tax advantaged accounts (401k) based on the options you have there and tax efficiency (bonds tend to be better in the tax advantaged account)
c) start investing into the lowest cost funds at Vanguard (e.g. total international and total domestic stocks, etc.)
d) look every couple month and re balance (or use your new investments to do this)
e) understand tax loss harvesting and do it
If you go to bogleheads and spend a bit of time posting in the format they propose you should get good help.

I am a big fan understanding important decisions and with your type of income learn at least the basics. The good news is at least you did not fall for an expensive option yet.

Added: not sure what your type of work is, if you are a MD you could also google white coat investor.

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IMO the only way to go for taxable investments is roboadvisors (betterment, wealthfront). Tax-efficiency and automatic tax loss harvesting should more than cover the management fee and can't easily be reproduced on your own.

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Just sign up for a Vanguard brokerage account on their site...

'Vanguard Total Stock Market Index Fund' is all you need.. no managing.

This is a tax efficient mutual fund. You shouldn't be looking at bond funds or Target date funds (which invests a percentage in bonds) in a taxable investment account.

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Just put it all in VTSAX. What job do you have? 

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intotheblue said:   So I've posted before but am now opening up an individual taxable Vanguard account for savings/retirement. I've already maxed out my 401K etc.. and need help with picking the right Vanguard. I make about 600K a year and am in a high tax bracket. I really want something easy I can put money into and not have to rebalance or manage much myself. I've been looking hard at the flowing types of investments: Lifestrategy Moderate Growth, Wellington, Target 2045 and Tax Managed Balanced Fund. I've been looking a lot lately at the last one because I heard it may have some tax advantage but what would be the disadvantage? Someone said "don't do international." Would I have to rebalance or manage the tax managed balance fund? Thanks
  
At 600K/year, if you don't understand finance, go hire a financial advisor.

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PrincipalMember said:   
intotheblue said:   So I've posted before but am now opening up an individual taxable Vanguard account for savings/retirement. I've already maxed out my 401K etc.. and need help with picking the right Vanguard. I make about 600K a year and am in a high tax bracket. I really want something easy I can put money into and not have to rebalance or manage much myself. I've been looking hard at the flowing types of investments: Lifestrategy Moderate Growth, Wellington, Target 2045 and Tax Managed Balanced Fund. I've been looking a lot lately at the last one because I heard it may have some tax advantage but what would be the disadvantage? Someone said "don't do international." Would I have to rebalance or manage the tax managed balance fund? Thanks
  
At 600K/year, if you don't understand finance, go hire a financial advisor.

  
Do not hire a financial adviser. Finding a good one is extremely hard and don't forget most of them make their money off you (commissions etc.) and putting you into high fee funds or other not very advantageous things. If you can find a good fee only adviser this is a different story but finding one of those might cost you as much time as learning things yourself. 

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SpiderPKT said:   At $600K salary, we should be asking you for advise not you asking us!!!
  OP is probably a doctor. Doctors are notoriously bad with money.

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I have a Vanguard Lifestrategy Moderate Growth, and I'm not particularly happy with it. On the other hand, I still have it.

IntoTheBlue, how much are we talking about investing? And will this go on year after year, or is 600k income a fluke?

Look into "Risk Tolerance". If your income is going to continue, and you don't start spending like the government, you should be able to squirrel away quite a bit. We've been able to do that (at much smaller salary). As a result, we're very risk tolerant.

I like the idea of the Total Stock Market index fund. Any Vanguard Index fund tends to be very tax efficient.

Rebalancing is appropriate only if you don't like the balance. And remember that rebalancing means selling, and selling exposes you to capital gains (outside of retirement).

Frankly, I suggest you:
* pick one thing to invest in that you like. I prefer mutual funds for that but, that's up to you.
* play with your retirement accounts. Do some rebalancing there. Get a feel in there for how you personally like to invest. In your retirement accounts, there's no tax consequence to rebalancing, so that makes it a good place to get your feet wet. In addition, most 401ks have much more limited choices, so you won't get paralyzed too many choices.
* you can effectively rebalance by changing how you invest new money. I've done that myself.

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