There are so many "don'ts" with a taxable brokerage account, what is left to invest in?
I was watching videos on the best ways to invest with a taxable account. I already max out my 401k each year, have no debt, and have a taxable account that has grown by a lot.
I was struck by all the "don't do this" and "don't do that" that there seems like nothing left. Nobody says what kinds of things to actually invest in.
Don't have fixed income - taxes!
Don't buy bonds - taxes!
Don't buy mutual funds - taxes!
Don't buy stocks with dividends - taxes!
Definitely don't own REITs - big dividends and taxes!
The main general rules I could glean were:
- ETFs are better than a similar mutual fund due to ETFs not having the pass through effect that mutual funds do.
- Favor passively managed over actively managed, since active managers buy & sell more which generates more taxes.
So passively managed ETFs, and perhaps individual stocks with zero dividends are the main things for a taxable account. Is that about it?