VTEI

jjha66

VTEI is fed tax free though

happy_snowy_owl

60% US stock / 35% intermediate tax-exempt bonds / 5% cash. Ticker example would be 60% VTI / 35% VTEI / 5% VUSXX. If you want to be a little more conservative, you can go 40-50% stock and up the bond fund. If you want a one-stop-shop for 50% stock / 50% tax-advantaged bonds, VTMFX.

happy_snowy_owl

Do a 70 / 25 / 5 or 60 / 35 / 5 portfolio between US stock index / tax exempt intermediate bond index / moneymarket fund Ticker example would be 60% VTI / 35% VTEI / 5% VUSXX

happy_snowy_owl

Holy over-complication of finances, batman! **401k** \- you should be maxing this at your income level. **Roth IRA** \- you also should be maxing this at your income level. You don't mention single or married / filing jointly, but you may need to do a backdoor Roth. **Taxable** \- stop messing around with like 3 different accounts. Combine them into one and invest in a mix of cash / MMF, VTEI (or whatever your institution has as an equivalent), and VTSAX as your risk tolerance and goals support. Although the MMF has higher interest rates, you're better off with the tax savings that something like VTEI offers you. Stop messing around with short-term treasury funds.

Gilgamesh79

A standard brokerage account is a fine vehicle for retirement investing. The obvious disadvantage is that you’ll incur tax liability on the distributions made by your investments in the tax year those distributions occur. That’s just the cost of doing business. Depending on your retirement income level, however, you might pay 0% or 15% on capital gains withdrawn from your brokerage account (and remember your invested capital is withdrawn tax free because they’re after-tax dollars). You might pay 22% or higher on the same withdrawals from a traditional 401(k) or IRA because they’re ordinary income. Plus, unlike tax-deferred accounts, brokerage accounts have no RMDs, so you get complete control over when you incur tax liability. Finally, when you pass on your brokerage account, your tax liability is wiped clean and your next of kin inherit the account with a stepped-up cost basis as of the date of your demise. That is a huge advantage compared to a tax-deferred account, which remains taxed at ordinary rates and your heirs are required to withdraw down to a zero balance within 10 years of your demise. The key advantage for tax-deferred accounts is for high earners to lower their current tax liability in the years they’re stuck in the higher brackets due to their earning power. Roth + brokerage will always be a powerful combination, at least so long as capital gains and dividends remain taxed at rates favorable to ordinary income. So do not fear the taxes associated with the standard brokerage account. The key is to invest in tax-efficient index funds. VT is perfectly fine. Bonds can be a bit tricky in a taxable account: Instead of a Total Bond Market ETF like BND, you may want to use a U.S. Treasury ETF like VGIT (Treasuries are state and local tax-exempt) and/or a good municipal bond ETF like VTEI (municipal bonds generally are federal tax-exempt). You’re on the right path. Go forth and build wealth.