Quote:
Originally Posted by noppenbd
I don't have a problem with dividends per se in a taxable account, but I do question the choice of GSHAX. This fund is kind of a dog IMHO. Pretax it is only returning 5-6% a year. Taxes are going to be around 15-20% (not 5%), when you include federal (15%) and state and local (5%), so after tax return is only 4-5%.
Also, most of OP's current situation (excluding individual stocks in brokerage) suggests conservative risk tolerance (15 yr mortgage, dividend paying mutual funds, 147K in a money market), so based on that I would think paying off the house and investing aggressively for retirement and moderately for medium term (education, cars, etc) would be the best plan. If OP disagrees with the conservative risk tolerance then Jim's #1 or #2 might be more appropriate.
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If in 15% tax bracket (50k gross is in middle of 15% tax bracket) dividends and long term capital gains are currently taxed at only 5%.
I saw the edit, posted this to make sure OP sees it.
I did not comment on funds per se. That is not the biggest problem the OP has (risks, goals and asset allocation are more important right now than fund selection).