I am really struggling with our international holdings and would like some advice.
Our AA calls for 33% of equities to be international.
We are in the 37% federal tax bracket.
Our taxable account is much larger than our tax advantaged accounts. I split our international holdings between 401k and taxable, with a greater amount in taxable just due to a lack of space in the 401k.
I was initially using VXUS (vanguard total intl) in taxable but turned off dividend reinvestment and started putting new contributions into VEA (vanguard developed intl).
VEA used to be a “tax managed” international ETF but it’s no longer marketed as such.
My concern is that these international funds are throwing off lots of dividends. Currently VEA has more qualified dividends, but that may not always be the case.
Given our tax bracket, is there anything I can do to mitigate paying a lot in taxes on these international dividends? Given our limited tax protected space, I assume it wouldn’t be wise to use up our 401k space on “just” international.
These are the times I wish I had an hourly financial advisor or was using PAS.
Our AA calls for 33% of equities to be international.
We are in the 37% federal tax bracket.
Our taxable account is much larger than our tax advantaged accounts. I split our international holdings between 401k and taxable, with a greater amount in taxable just due to a lack of space in the 401k.
I was initially using VXUS (vanguard total intl) in taxable but turned off dividend reinvestment and started putting new contributions into VEA (vanguard developed intl).
VEA used to be a “tax managed” international ETF but it’s no longer marketed as such.
My concern is that these international funds are throwing off lots of dividends. Currently VEA has more qualified dividends, but that may not always be the case.
Given our tax bracket, is there anything I can do to mitigate paying a lot in taxes on these international dividends? Given our limited tax protected space, I assume it wouldn’t be wise to use up our 401k space on “just” international.
These are the times I wish I had an hourly financial advisor or was using PAS.
Statistics: Posted by NYCaviator — Tue Sep 10, 2024 9:23 am — Replies 4 — Views 177