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Subject:  Re: Retirement Investment Date:  8/10/2000  9:31 AM
Author:  rkmacdonald Number:  24036 of 90505

Author: jbking Date: 8/9/00 6:23 PM Number: 24030
1) Tax-managed funds. These are funds that are managed to keep distributions low, so for example instead of Vanguard's 500 Index, you take Vanguard's Tax-managed Growth & Income which is a bit better in terms of tax efficiency. Vanguard, Schwab, and likely a few other fund companies have these now and typically they come with miniums in the $10,000 range and have redemption fees. Usually there is something in the name of the fund to indicate that it is tax-managed or tax-sensitive.

I looked into this, and the Vanguard fund (VGTIX) does have a good record, and their expense ratio is very low (0.19%). It is essentially a tax managed S&P 500 Index Fund. The redemption fee is 2% if you need to sell shares within one year and 1% for another year after that. After two years this redemption fee goes away.

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