Is there a broad stock market index fund that doesn't pay dividends?

Discussion of the Stock portion of the Permanent Portfolio

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economicsjunkie
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Re: Is there a broad stock market index fund that doesn't pay dividends?

Post by economicsjunkie » Fri Oct 16, 2015 4:06 pm

mathjak107 wrote: the best results when investing long term  are generally going to be  from keeping equities in the deferred accounts and bonds and cash in the taxable accounts.
This is interesting, I was thinking along the same lines, although I thought the order should be bonds first, then stocks, then cash, because the interest on bonds is higher than the dividends on stocks usually, no?
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mathjak107
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Re: Is there a broad stock market index fund that doesn't pay dividends?

Post by mathjak107 » Tue Nov 03, 2015 7:48 am

no , the total return on stocks easily eclipses the returns on bonds usually . as little as 1% in dividends in the taxable account or a fair amount of turnover in a fund generating distributions wipes out any tax savings from lower capital gains rates .

equity's grow better when everything is deferred and taking up the space in a deferred account with cash at 1$% and bonds under 3% does not work out as well .

if you are anything but in the 15% bracket and cn benefit from zero capital gains then the deferred account are where you want equity's .
Last edited by mathjak107 on Tue Nov 03, 2015 7:51 am, edited 1 time in total.
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4x4
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Re: Is there a broad stock market index fund that doesn't pay dividends?

Post by 4x4 » Sun Jan 31, 2016 10:52 am

Interesting twist on the usual advice on stocks in taxable bonds in tax deferred, in general.

This is an interesting article on AA as well
http://beta.morningstar.com/articles/73 ... s-of-.html
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Re: Is there a broad stock market index fund that doesn't pay dividends?

Post by 4x4 » Fri Apr 29, 2016 12:25 am

craigr wrote:
After tax returns for 10 years:

VTCLX: 8.14%
VTSMX: 8.08%
I think the deciding factor comes down to what tax bracket, VTSMX being generally considered superior except for the top tax brackets, I forget the cross over point.
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