Generally people put their highest performing assets in a Roth, and that usually means stock. It's what I do. I also do likewise for my HSA because I don't plan on spending from it for a while.Does it matter much where different types of bond indexes** go?
If you had a 401k, Roth and Traditional IRA, where is most tax efficient placement of:
- an intermediate bond index fund
- short term bond index fund (and/or) short term corporate bond ETF
- TIPS mutual fund
?
Thank you.
Also, generally speaking, most people try and put their bonds in tax advantaged space such as IRAs and 401Ks. My bonds (duration matched TIPS funds) are in tax deferred (IRA and 401K) so that I don't pay tax on them until I withdraw. Regarding different types of bonds and where they go, I don't think it makes much difference which kind of bond of bond fund you're holding, though some folks hold muni bond funds and hold them in their taxable accounts. When yields were much lower than they are now, there were some people proposing to hold taxable bonds in taxable accounts as if yields would stay low forever.
I also have some money in taxable accounts Money Markets and ultrashort bond funds, but this is money set aside for some home improvements.
Cheers.
Statistics: Posted by dcabler — Tue Apr 16, 2024 4:59 am — Replies 2 — Views 233