I am looking at investing $50k into VWENX in a taxable account. I am already maxing out an IRA and these funds are the proceeds of a house sale. I just want to know if I have the tax treatment of this investment annually and when I cash out (thinking 10-15 year timeline).
I do understand that as a managed balanced fund there will be taxable events even if I simply hold shares of the fund. Right now SEC yield is 2.45% so I would see something like $1200 in capital gains. I'm in the 22% tax bracket and 15% LTCG bracket, so something north of $180 in taxes first year, right?
If that is correct, what happens in 10-15 years when I go to sell? Let's say it does 10% annual returns, and if the SEC yield is fixed (it isn't but for exampled) is the effective annual gain 7.55% per year?
Submitted January 19, 2020 at 09:52PM by Relaxed_Engineer https://ift.tt/2G8ieuB
