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I've been toying with the idea of keeping some of my non-EF money in a taxable Vanguard account holding the Total Market Index fund VTSMX. I've never held a mutual fund outside of a tax-deferred account so am unfamiliar with the way dividends are categorized as qual vs non-qual.
For those of you that hold funds in taxable accounts, is there some report that documents how much of the dividends are qualified vs non-qualified?
I'm primarily interested in this mode of investing for its tax-efficiency. If I understand correctly qualified dividends are taxed at lower than my marginal tax rate. I'm comparing this to a bond fund where dividends are taxed as ordinary income. I understand that there is a major difference in risk between these 2 approaches, but I can use the potential LT capital losses to lower my tax burden as well.
For those of you that hold funds in taxable accounts, is there some report that documents how much of the dividends are qualified vs non-qualified?
I'm primarily interested in this mode of investing for its tax-efficiency. If I understand correctly qualified dividends are taxed at lower than my marginal tax rate. I'm comparing this to a bond fund where dividends are taxed as ordinary income. I understand that there is a major difference in risk between these 2 approaches, but I can use the potential LT capital losses to lower my tax burden as well.
. I've primarily held my non-EF funds in an online savings account which pays interest that's taxed to the fullest extent of the law. In my first post I hadn't taken tax-exempt bond or state muni funds into account. I guess I'd have to figure out a TEY and guess if an equity fund could *potentially* beat it year over year.
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