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

Discussion of the Stock portion of the Permanent Portfolio

Moderator: Global Moderator

economicsjunkie
Full Member
Full Member
Posts: 88
Joined: Mon Jun 29, 2015 2:09 pm

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?
User avatar
mathjak107
Executive Member
Executive Member
Posts: 4456
Joined: Fri Jun 19, 2015 2:54 am
Location: bayside queens ny
Contact:

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.
User avatar
4x4
Associate Member
Associate Member
Posts: 41
Joined: Mon Aug 04, 2014 3:30 am

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
User avatar
4x4
Associate Member
Associate Member
Posts: 41
Joined: Mon Aug 04, 2014 3:30 am

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.
Post Reply