http://www.thesunsfinancialdiary.com/investing/september-2007-score-card-%e2%80%94-part-ii-ytd-performance-of-my-actively-managed-funds/ Fri, 03 Feb 2012 17:42:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.thesunsfinancialdiary.com/investing/september-2007-score-card-%e2%80%94-part-ii-ytd-performance-of-my-actively-managed-funds/#comment-25128 Sun Tue, 09 Oct 2007 18:57:26 +0000 http://www.thesunsfinancialdiary.com/investing/mutual-fund/september-2007-score-card-%e2%80%94-part-ii-ytd-performance-of-my-actively-managed-funds/#comment-25128 It's true that usually funds with less distributions (such as index funds) should be held in tax deferred accounts. The reason I did just the opposite was because when I started to buy mutual funds, I started with regular taxable accounts then later added IRA accounts. At that time, I didn't know much about investing, just wanted to buy some funds and get good returns. So I only looked at actively managed funds with high returns (that was then). I bought several funds in a short period of time and the amount exceeded the IRA contribution limit (that's one reason as well). Another reason was I didn't know how long I will hold those funds. Also when we talked about index funds, Vanguard funds are the obvious choice. But their funds need $3000 minimum and one year contribution can only buy one fund and they have annual fees for balance below certain level. With all these reasons, I went for actively managed funds and kept them in taxable accounts for all these years. It’s true that usually funds with less distributions (such as index funds) should be held in tax deferred accounts. The reason I did just the opposite was because when I started to buy mutual funds, I started with regular taxable accounts then later added IRA accounts. At that time, I didn’t know much about investing, just wanted to buy some funds and get good returns. So I only looked at actively managed funds with high returns (that was then). I bought several funds in a short period of time and the amount exceeded the IRA contribution limit (that’s one reason as well). Another reason was I didn’t know how long I will hold those funds. Also when we talked about index funds, Vanguard funds are the obvious choice. But their funds need $3000 minimum and one year contribution can only buy one fund and they have annual fees for balance below certain level. With all these reasons, I went for actively managed funds and kept them in taxable accounts for all these years.

]]> http://www.thesunsfinancialdiary.com/investing/september-2007-score-card-%e2%80%94-part-ii-ytd-performance-of-my-actively-managed-funds/#comment-25105 Steve Tue, 09 Oct 2007 15:06:27 +0000 http://www.thesunsfinancialdiary.com/investing/mutual-fund/september-2007-score-card-%e2%80%94-part-ii-ytd-performance-of-my-actively-managed-funds/#comment-25105 Would you mind divulging why you put your actively managed funds in taxable accounts and passive in tax-deferred? I hadn't really thought about it before, but my first thought would do it the other way (passive in taxable, active in retirement) to avoid possibly large and unpredictable capital gains exposure. Also, sorry if you covered this in a previous post, I am fairly new here. Would you mind divulging why you put your actively managed funds in taxable accounts and passive in tax-deferred? I hadn’t really thought about it before, but my first thought would do it the other way (passive in taxable, active in retirement) to avoid possibly large and unpredictable capital gains exposure. Also, sorry if you covered this in a previous post, I am fairly new here.

]]>