I currently have on the Tax Advantaged side a combo of Roth 401k, Roth IRA and then a couple Deferred Compensation type plans from work. Then I also have a decent chunk in Taxable at Vanguard split into mostly stocks but also about 35% bonds. The bonds there are Muni funds so I am paying minimal tax on those distributions (highest tax rate right now)
I keep reading people saying you should hold all your bonds in Tax Advantaged but when you have Roth's, wouldnt you want those to grow the most so you would want those to have stocks? I did put those deferred comp vehicles over to bonds and fixed income with the logic that those will get fully distributed out to me upon retirement and so I will be paying income tax on those balances, so want those to grow "the slowest" among my holdings.
I also feel like it makes sense to hold in the Taxable Account some bonds (and recently have some in Money Markets Muni due to high yields and rising rates past couple years) because that is my "dry powder" in a stock downturn to reinvest. I guess I could rebalance in a tax advantage account too in a downturn from bonds to stocks now that I think about it.
What do others do? Am I looking at something wrong in terms of the ROTHs and should be using that side to then have low or no bond holdings in the taxable side?
I keep reading people saying you should hold all your bonds in Tax Advantaged but when you have Roth's, wouldnt you want those to grow the most so you would want those to have stocks? I did put those deferred comp vehicles over to bonds and fixed income with the logic that those will get fully distributed out to me upon retirement and so I will be paying income tax on those balances, so want those to grow "the slowest" among my holdings.
I also feel like it makes sense to hold in the Taxable Account some bonds (and recently have some in Money Markets Muni due to high yields and rising rates past couple years) because that is my "dry powder" in a stock downturn to reinvest. I guess I could rebalance in a tax advantage account too in a downturn from bonds to stocks now that I think about it.
What do others do? Am I looking at something wrong in terms of the ROTHs and should be using that side to then have low or no bond holdings in the taxable side?
Statistics: Posted by Hogan773 — Sat Oct 05, 2024 6:28 pm — Replies 3 — Views 285