Looking at Vanguard Tax-Managed Balanced Fund Admiral Shares.
Any comments, alternatives, suggestions?
Disclaimer: I have no idea where you are on your retirement journey, your risk tolerance, or your tax sensitivity.
Looking at it from a macro economic point of view…I don’t like the 50/50 allocation as we are going into a Fed easing environment. I suspect that we will see equities outperform bonds for the next several years. However, if you are in the later phase of life and not concerned with growth, this seems like a reasonable choice for risk management. I would suspect that much of the dividend is tax exempt. I like that its a Morningstar 5* rated fund with very low expense ratio and outperforrms its category.
Well into retirement @ +75, looking to minimize bumps into higher marginal tax rates.
I understand tax advantages of govt bonds, what else does the “tax managed” part bring to the table?
I would assume the portfolio is comprised of Municipal Bonds and Qualified Dividend paying stocks (no REITs, etc.). In addition, I would assume that they only realize long-term capital gains. That would minimize the taxes pretty well…
Maybe you have this if not here is a fact sheet on it…
have you checked/asked the Bogleheads/Personal Investors forum? It’s really helpful.
There are obvious tax advantages.
On the flip side, a disadvantage is less control over each asset class should you later want to rebalance your stock/bond asset allocation. You also have less opportunities to tax-loss harvest.
https://obliviousinvestor.com/what-are-the-advantages-of-tax-managed-balanced-funds/