I would like to start investing in a non-retirement account. I have:
- A 401k through my employer I'm contributing to with Vanguard
- A 529 for my two daughters, three and five, I'm contributing to with Vanguard
- No debt
- A six month emergency fund
- A couple thousand "play money" I would like to invest for at least one year
The money is just sitting there and I would like to keep up with inflation at the least. Vanguard gives me the option to add a new brokerage account for "stocks, bonds, ETFs, CDs, and non-Vanguard mutual funds."
Are ETFs a good option? If so, how would taxes work? For example, if I invest $2,000, it returns 10% in one year and I don't withdraw anything, around how much would I owe on the $2,200? If I withdraw the entire $2,200 around how much would I owe?