Of course, everything is better in a Roth. But not many people can make that happen. So the question is what is best to put in your limited Roth space?The TIPS ladder is better in a Roth than taxable. All the gain will be tax-free in Roth vs taxable dividend payments plus annual inflation adjustments.Please don't put it in a Roth account. You should put the assets that are expected to grow the most (stock funds) in there instead to maximize tax-free growth. You probably don't want it in a tax-deferred account either as the whole account is already deferring the taxes.
Put it in a taxable account instead. Or make a Roth Conversion ladder.
Answer: whatever is expected to grow the fastest! Don't you want most of your growth to be tax-free? Which asset generates the most growth? Thus, stock funds are usually put in there if you want your portfolio to be tax-efficient.
Here's the complex wiki page that talks about Tax-efficient Fund Placement. It's all about where you place each asset in order to minimize taxes.
Statistics: Posted by celia — Fri Sep 20, 2024 2:08 am — Replies 18 — Views 910