My Roth IRA is completely maxed out for the year, and I have cash sitting in my brokerage account that I’d like to invest. I know FXAIX is best in a tax advantaged account, and was wondering if FXAIX is still a good investment in my individual account.
Do you have any recommendations for a long term hold (30 years) in my individual account? I’m open to any ETF/Mutual Fund/Stock as long as it’s fine in a taxable account. Thanks!
Best strategy for a non-tax advantage account?
byu/gamedawgs ininvesting
Posted by gamedawgs
3 Comments
I would hold an ETF in taxable. It is universally portable, has better tax loss harvesting options, and is more tax efficient (although lately that advantage has only been theoretical).
VOO would be the Vanguard ETF equivalent of FXAIX. There is an added advantage of intentionally holding different assets in taxable compared to tax sheltered and that is you can’t accidentally create a cross account wash sale (sell FXAIX in taxable, accidentally say due to dividend reinvestment buy FXAIX in tax sheltered).
With a taxable account, you want tax-efficient funds. This means broad market index funds
depends on your strategy and risk tolerance. FXAIX is fine.