rktect1
Member
So, I recently talked to my Vanguard rep. His thought is that I have too much risk AND my capital gains is going to end up being really high when I retire somewhere between 11-16 years from now.
As I am not a tax savy person I really was not understanding this. I currently have about 60% of my investments in the Vanguard Healthcare VGHAX. This is a very large amount of money and this fund has done very well for me. Over the years I have paid very high taxes at the end of the year and thought I was free and clear basically. My money, after tax, was invested, then end of year I pay taxes ergo all the money in the account should then be mine. Apparently not. Some sort of capital gains tax after I retire and take out the money. No, this is not in an IRA, just invested in the VGHAX.
So what gives here? How will this affect me in retirement? Why is the rep telling me to go to bonds or index funds and how will that not affect me in capital gains?
Also, I have averaged about 17% per year in this fund for the last 5 years. It has averaged 11.25% over the past 10 years and 10.5% since 2001. Why in the hell would I want to move into bond funds or index funds making 5% per year? How is that helping me vs. VGHAX?
Thanks to anybody who responds to this, I will not hold you responsible for info/advice you give here in regards to my questions.
PS, If it helps, when I retire I will have about $100,000 in annual income from my pension, her pension and two SS. Married filing jointly by then.
As I am not a tax savy person I really was not understanding this. I currently have about 60% of my investments in the Vanguard Healthcare VGHAX. This is a very large amount of money and this fund has done very well for me. Over the years I have paid very high taxes at the end of the year and thought I was free and clear basically. My money, after tax, was invested, then end of year I pay taxes ergo all the money in the account should then be mine. Apparently not. Some sort of capital gains tax after I retire and take out the money. No, this is not in an IRA, just invested in the VGHAX.
So what gives here? How will this affect me in retirement? Why is the rep telling me to go to bonds or index funds and how will that not affect me in capital gains?
Also, I have averaged about 17% per year in this fund for the last 5 years. It has averaged 11.25% over the past 10 years and 10.5% since 2001. Why in the hell would I want to move into bond funds or index funds making 5% per year? How is that helping me vs. VGHAX?
Thanks to anybody who responds to this, I will not hold you responsible for info/advice you give here in regards to my questions.
PS, If it helps, when I retire I will have about $100,000 in annual income from my pension, her pension and two SS. Married filing jointly by then.
