Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (20) | Ignore Thread Prev | Next
Author: FoolNBlue Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5138  
Subject: Re: Tax managed accounts Date: 11/15/2006 7:23 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Suggestion: Do NOT have dividends re-invested to make keeping track of things easier. If you keep the fund for 20 years, do you really want to track down 20 years of quarterly dividend payments to find out your basis? And do you want to have to worry about accounting for the last year differently because it's short-term capital gains from the three dividend payments?

I dissagree, unless you spend the dividends you will have to invest them somewhere and whatever investment vehicle you choose will probably involve tax planning/record keeping. It is not that difficult to keep a spreadsheet with all transactions on it to track cost basis. (I've been doing it for over a decade tracking DRIPS, taxable accounts and even my Roth). The key is to populate the spreadsheet as time goes on; one transaction punched in every three months when you get your statement is a lot less painful than figuring things out using yellowed statements 20 years from now.

FoolNBlue (Reinvesting his dividends and closer to FIRE from doing so)
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (20) | Ignore Thread Prev | Next


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.