I have some extra income that I would like to put into mutual funds, instead of leaving it in a 1% interest savings account (best I could find right now). I'm in the United States.
Some background - I have about a year of emergency funds saved, and no debts. I am contributing the max to my IRA each year.
If I buy into some funds via Vanguard for example, what are taxable events? My understanding:
- If I were to sell any holdings off.
- Any dividends I receive each year.
Are there any other tax or legal things to be aware of before starting this kind of investing? I'm only familiar with investing in the context of retirement accounts,