This is a silly statement - there’s plenty of middle class people who hold mutual funds who are hit with capital gains taxes every year from distributions from the fund.

These 'taxable people' are in the minority:

> Approximately 6 in 10 households in the United States own securities investments—typically through taxable accounts, IRAs or employer-sponsored retirement plans. However, this figure drops to a little over 3 in 10 if only taxable investments are considered. Households that own taxable accounts are more likely to be older, affluent, college educated and white relative to households with only retirement accounts or households without investment accounts.

* PDF: https://www.sec.gov/spotlight/fixed-income-advisory-committe...

The 3-in-10 would also have sheltered accounts:

> Importantly, most of these taxable investor households (89 percent) also own a retirement account like a 401(k) or IRA.

I stand by my statement: most people don't have to worry about tax events in mutual funds, and those that are in the situation have a 'good problem'.

You don’t know what you’re talking about - taxes are never a ‘good problem’. ‘Good problem’ doesn’t even make any sense and you using it here shows you don’t know the difference between income and wealth.

Having so much money that you've maxed out and over-flowed tax-sheltered accounts—accounts that many people aren't even able to afford—to the point that you're now worrying about tax efficiency is a not a bad situation to be in IMHO.