Should I hold FTSE All-World ex-US or Total International Index in a taxable account for foreign tax credit even though I haven max out my tax-advantaged account?
No, you should fill your tax-advantaged accounts first. The main exception is a 401(k) or 403(b) with expenses so high that they negate the benefit of either tax-deferred growth or tax-free growth; you should only invest enough in such an account to get the maximum employer match. Another exception may be a non-deductible Traditional IRA. It may not be a good idea to place a tax-efficient stock index fund in a non-deductible Traditional IRA. See Non-deductible Traditional IRA for more information.
Related Questions
- Should I hold FTSE All-World ex-US or Total International Index in a taxable account for foreign tax credit even though I haven max out my tax-advantaged account?
- I am running out of tax-advantaged room. Should I put Total Stock Market or FTSE All-World ex-US in a taxable account?
- Both Total International and FTSE All-World ex-US lack small-cap stocks. What should I buy to fill that area?
