Vanguard LifeStrategy for Emergency Fund
I am thinking of putting a portion of my emergency fund in the LifeStrategy Income Fund (20/80).
I have read that this fund is not that great in a taxable account (not the most tax efficient).
If I put the fund in a tax sheltered account and move something like total stuck fund to the taxable account, is that really the best thing? Would the potential tax savings be offset by the expected higher returns of a total stock fund, which is now in taxable?
If it helps my marginal tax rate is 25% and I am thinking of putting $25K worth of emergency fund in LifeStrategy.
Thoughts or suggestions?
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