Vanguard patented a fund strategy which avoids short term annual taxable events (yeah! great! we all save on annual taxes!) and roll the annual taxes into the long term taxable event at liquidation / sale. . . . sounds great! yahooo!
Except that its in Vanguard's favor to create a huge taxable event to switch out of Vanguard, not necessarily in the customers favor, without asking them or informing them of how the short term annual taxes are shifted into the longer term we you sell, of course, no one knows in the future when they will sell. . or what the taxes will be,
but never assume that everything marketed to you as a financial savings is a long term benefit . . . as a tax preparation colleague of mine with the same problem found out . . taking a bit of medicine each year might be a bit more beneficial than a bigger hit in the future
finance guy
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