*Yes, I'll probably use terms incorrectly:
-I have a brokerage account from which I am contributing to a total market index fund and some selected stocks as well as I deem fit. I plan to not sell my assets/cash out for at least 25 years.
1. I have my account set to reinvest dividends automatically. Does that sound right?
2. I'm not a good candidate for an employer based 401k etc., what are the BASIC things I should be doing to minimize tax liability with stocks/bonds?
3.Are there any obvious downsides to having several types of index funds rather than just one with a larger balance? Maybe I'll buy into a more aggressive index fund to complement my total market fund?
4.Can someone give me a hypothetical example of what happens (in terms of taxes and other cons) if I had an unexpected major expense and had to sell stocks? I'm having a hard time accepting that it's recommended that I have roughly 85 percent of my assets in stocks given my needs/wants. But I also can't stand having cash in bank beyond emergency funds anymore; I'm losing money effectively.
Thanks!
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