Quotes About Taxable account

First, a total-market index fund is an ideal "core" equity holding in a taxable account, because of its "tax efficiency." The Russell 3000 and the Wilshire 5000 have essentially no turnover. Stocks may leave the index via mergers and acquisitions, but these are often not taxable events. The only way a stock truly leaves these portfolios is feet first, by going bankrupt, in which case you don't have to worry about capital gains.

It costs more to transact abroad, and many foreign governments tax stock dividends; although you can recover this cost in a taxable account through the foreign tax credit on your U.S. tax return, you cannot do so in a retirement account.

To maximize the return of your taxable account, you want to minimize the taxes you pay.

Use tax-loss harvesting in your taxable account as part of your rebalancing strategy. If you have losers to sell, then sell them prior to December 31, so you can get the tax benefits on this year's tax return. If you have winners to sell in your taxable account, you might want to wait until after January 1 to sell in order to push the tax bill into the following year.