http://www.careerramblings.com/2007/02/09/taxable-vs-tax-deferred-growth/ Your Professional Development Fri, 21 Nov 2008 12:25:08 +0000 http://wordpress.org/?v=2.6.2 http://www.careerramblings.com/2007/02/09/taxable-vs-tax-deferred-growth/#comment-3081 Paul Fri, 11 May 2007 11:02:08 +0000 http://www.careerramblings.com/2007/02/09/taxable-vs-tax-deferred-growth/#comment-3081 Thanks for this interesting article. I have the same question as Charles. If I basically have a long-term buy and hold strategy on a tax-efficient index fund like Vanguard Tax-Managed growth and income, which tracks the S&P 500 and tries not to pay out dividends, then I wouldn't I be better off paying the 15% capital gains tax on the gain in a taxable account rather than having it grow tax-free but have to pay 33% marginal rates on ordinary income? I'm interested in what people have to say about this. Thanks for this interesting article. I have the same question as Charles. If I basically have a long-term buy and hold strategy on a tax-efficient index fund like Vanguard Tax-Managed growth and income, which tracks the S&P 500 and tries not to pay out dividends, then I wouldn’t I be better off paying the 15% capital gains tax on the gain in a taxable account rather than having it grow tax-free but have to pay 33% marginal rates on ordinary income? I’m interested in what people have to say about this.

]]> http://www.careerramblings.com/2007/02/09/taxable-vs-tax-deferred-growth/#comment-1456 Charles Sat, 17 Mar 2007 21:42:31 +0000 http://www.careerramblings.com/2007/02/09/taxable-vs-tax-deferred-growth/#comment-1456 Does this example take into account that growth in taxable accounts may max out at 15% and withdrawal from tax deferred accounts is taxed as regular income? At current tax rates for capital gains and qualified dividends, I am no longer sure that investing in tax deferred accounts really makes sense. Does this example take into account that growth in taxable accounts may max out at 15% and withdrawal from tax deferred accounts is taxed as regular income? At current tax rates for capital gains and qualified dividends, I am no longer sure that investing in tax deferred accounts really makes sense.

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