At present I have two accounts, a taxable account and a Roth IRA, with, let's say, about 30+ year time horizon until retirement.
1) Does it make sense to place all fixed income (TIP and BND) in the taxable on the assumption that tax-free growth is going to be more valuable than the potneital savings on taxes over time? Does it tip the scales that some of my fixed income is exempt from state taxes?
2) Does it make sense to hold all REITs in the Roth, on the assumption that their relative tax-inefficiency (combined with expected growth) makes the potential tax-savings more valuable than any potential higher expected tax-free growth on non-real estate equities?
3) How, if I just want to hold equities in the Roth, do I use it for rebalancing when equities outpace fixed income? Do I just accept the need to purchase FI in the Roth or otherwise the need to accept capital gains if I really want to avoid FI in the Roth?
4) I'm in a low tax bracket now, and foresee being in a higher tax bracket in the next few years. Assuming cash flow is no issue, does it make sense to stick with Roth contributions until my tax bracket is higher than my expected bracket in retirement, and then switching to traditional IRA/401k?
1) Does it make sense to place all fixed income (TIP and BND) in the taxable on the assumption that tax-free growth is going to be more valuable than the potneital savings on taxes over time? Does it tip the scales that some of my fixed income is exempt from state taxes?
2) Does it make sense to hold all REITs in the Roth, on the assumption that their relative tax-inefficiency (combined with expected growth) makes the potential tax-savings more valuable than any potential higher expected tax-free growth on non-real estate equities?
3) How, if I just want to hold equities in the Roth, do I use it for rebalancing when equities outpace fixed income? Do I just accept the need to purchase FI in the Roth or otherwise the need to accept capital gains if I really want to avoid FI in the Roth?
4) I'm in a low tax bracket now, and foresee being in a higher tax bracket in the next few years. Assuming cash flow is no issue, does it make sense to stick with Roth contributions until my tax bracket is higher than my expected bracket in retirement, and then switching to traditional IRA/401k?
Statistics: Posted by MandrakeBabka — Sat Dec 21, 2024 7:04 am — Replies 1 — Views 117