We started investment with 401K. After coming in contact with the Boglehead forum, we started investing in a taxable account. Because of this, we have 60/40 split in each account - I believe this is not the preferred allocation and we have to look at the overall allocation. After reading articles on asset allocation, we come to realize that our 401Ks should predominantly consist of bond index funds. I also paid substantial tax this year because of bond index fund in taxable account which opened my eyes wide!
Questions:
1. Can I just change the allocation % in 401K? Will there be any tax implications?
2. What can I do with bond index fund in taxable account? Just keep it as it is? I can stop dividend reinvest.
3. I have already started buying only total stock index in taxable account
4. Tomorrow, if one or both of us leave the employment (and start something on our own), what are our options with 401K - just keep it with the former employer?
Note that we use tIRA->Roth IRA (backdoor roth) every year so I don't want to disturb that arrangement.
Thanks
ssn
Questions:
1. Can I just change the allocation % in 401K? Will there be any tax implications?
2. What can I do with bond index fund in taxable account? Just keep it as it is? I can stop dividend reinvest.
3. I have already started buying only total stock index in taxable account
4. Tomorrow, if one or both of us leave the employment (and start something on our own), what are our options with 401K - just keep it with the former employer?
Note that we use tIRA->Roth IRA (backdoor roth) every year so I don't want to disturb that arrangement.
Thanks
ssn
Statistics: Posted by ssn — Mon Jun 03, 2024 10:26 pm