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shipwreckdalone
Explorer ○○

TAIFX

I have been monitoring American Funds Tax Advantaged G&I fund for some time now. Relatively new fund 5/2012. American Funds has a good reputation. It is a fund of funds. I have been satisfied with the performance and risk tolerance. Very competitive with M* fav WVINX. I am considering purchase at some point in the future to diversify the 30-50 Allocation fund sector of my portfolio.

Question : for those of you familiar with American Funds share class structure (ER, purchase restrictions, min purchase, etc), which fund ticker is best suitable for purchase at Fidelity, Vanguard?  Any thoughts about best way to enter this fund is appreciated in those two brokerage accounts.

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10 Replies
chang
Contributor ○○○

Re: TAIFX

I'm not sure exactly what you're asking. TAIFX (the F-1 class) is the best one you can get, unless you have access to the F-2 or F-3 classes. I tried to find a way into those without an advisor, but couldn't. I originally bought TAIFX at Fido; later transferred it to TDA.

I think it is a good fund. There are very few (any?) balanced funds with LV equity and HY Muni bonds.

I am not adding to it or reinvesting dividends, because I no longer want/need balanced funds, but prefer to use separate equity and bond funds. But I don't plan to sell my holding.

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yogibearbull
Valued Contributor

Re: TAIFX

F1 class TAIFX is available NTF at Fido, Schwab, Vanguard, etc.   http://financials.morningstar.com/fund/purchase-info.html?t=TAIFX&region=usa&culture=en-US

At Vanguard, there is also VTMFX with 50-50 allocation.

YBB
chang
Contributor ○○○

Re: TAIFX


@yogibearbull wrote:

At Vanguard, there is also VTMFX with 50-50 allocation.


But note that VG also offers Tax-Managed Cap App (LC) and Tax-Managed Small Cap (SC), as well as a slew of good muni funds, both I/G and HY. That's why I don't find VG Tax-Managed Balanced that compelling. Although for a 50-50 balanced fund in a taxable account, it is certainly attractive given its low ER.  

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shipwreckdalone
Explorer ○○

Re: TAIFX

I'm just looking for general thoughts on best way to purchase and anything I may have missed on the merits of TAIFX as an  investment pros/cons.

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Dawgie
Follower ○○○

Re: TAIFX

We invested a large chunk of money in TAIFX about 3 years ago from an inheritance. I’ve been satisfied with that decision although it’s not a tax efficient as I expected due to capital gains distributions. We also invested portions of the inheritance in three muni funds (FTABX, FLTMX and GHYAX) as well as a total stock market index fund (FZROX). We purchased all of the funds through Fidelity.

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sthanga
Explorer ○○○

Re: TAIFX

Dawgie,

"We invested a large chunk of money in TAIFX about 3 years ago from an inheritance. I’ve been satisfied with that decision although it’s not a tax efficient as I expected due to capital gains distributions. We also invested portions of the inheritance in three muni funds (FTABX, FLTMX and GHYAX) as well as a total stock market index fund (FZROX). We purchased all of the funds through Fidelity".

All our taxable accounts are with Fidelity. (only the  I am interested in reducing the tax consequences of having Equity mutual funds. Thanks for suggesting FZROX, which avoids capital gains distributions. one has to pay tax on the dividend income. In your portfolio with three muni funds and total stock market index funds, Am I right in assuming  that if one does not sell these funds in a year,  then only the dividend income from the index fund is taxable? 

If I do the same with one or two dividend ETFs, and  a few better quality High Yield Muni funds would it give me minimum taxable income in the taxable accounts?  I am not clear about the  difference between an ETF and index fund from the point of taxable income.

SRT

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Dawgie
Follower ○○○

Re: TAIFX

We’ve only held FZROX since January and it’s had no distributions of any kind since then. Previously that money was in PRBLX, an excellent fund in an IRA, but it’s had huge capital gains distributions the past few years. I wanted a large cap stock fund with minimal distributions since this fund is in a taxable account.

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sthanga
Explorer ○○○

Re: TAIFX

Dawgie,

Thanks.

SRT

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chick
Follower ○○○

Re: TAIFX

I dislike any fund that requires 12-b-1 .25%

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Highlighted
chang
Contributor ○○○

Re: TAIFX


@chick wrote:

I dislike any fund that requires 12-b-1 .25%


Same here. But I still find this one of the better balanced funds, and a unique option for LV + HY Muni.

I wish I could get the R-2 or R-3 share classes, but I've looked and I don't see a way. 

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