Consider a portfolio of $100
You have a Roth with $75 worth of Equities.
You also have a tIRA with $25 worth of Bonds.
On the surface, this looks like a 75/25 AA. But...
The $25 worth of bonds in the traditional account will be taxed at 22% when spent, so that bond allocation is really only worth $19.50. (Due to your joint ownership with Uncle Sam)
Does this mean that your portfolio has a higher effective equity ratio and is therefore more risky than you were targeting?
I ask this because we are getting a relatively high amount of equities in our Roth and our tax-deferred IRAs are more heavily loaded with fixed.
You have a Roth with $75 worth of Equities.
You also have a tIRA with $25 worth of Bonds.
On the surface, this looks like a 75/25 AA. But...
The $25 worth of bonds in the traditional account will be taxed at 22% when spent, so that bond allocation is really only worth $19.50. (Due to your joint ownership with Uncle Sam)
Does this mean that your portfolio has a higher effective equity ratio and is therefore more risky than you were targeting?
I ask this because we are getting a relatively high amount of equities in our Roth and our tax-deferred IRAs are more heavily loaded with fixed.
Statistics: Posted by Workinprogress — Wed Dec 11, 2024 11:04 pm — Replies 18 — Views 615
