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Personal Investments • Re: Starting taxable investing, agonizing over choices

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As you may need the funds for non-retirement reasons (school), contributing to Taxable rather than Roth 401k (via a mega backdoor Roth (MBR)) is the better choice for accessibility to your funds when needed. But any portion earmarked solely for retirement would be better contributed to Roth 401k via MBR as Roth accounts grow tax free.

Aside from your emergency fund, your asset allocation is currently 100/0 (equity/fixed income). If you want to add fixed income, buying $10k in I-Bonds is reasonable if you want inflation protection and Federal tax deferral/no state taxes. Otherwise, use your Traditional 401k (can it be invested differently than your Roth 401k?) to start adding fixed income to your portfolio.

For funds you contribute to your Taxable brokerage account, buy tax-efficient equities such as a total stock market fund. To help minimize inadvertent wash sales, exchange the Roth IRA’s TSM fund to an S&P500 fund.

At some point, you may want to add international equity to your portfolio.

Statistics: Posted by HomeStretch — Mon Dec 02, 2024 5:55 am



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