Rebalance in your 401(k) and otherwise allow your asset allocation to drift. If for some reason you are contributing so much to your taxable that your asset allocation gets out of whack, then that would mean to me that you are in a very high tax bracket, so that you could add some tax-exempt muni bonds to your taxable portfolio at that point.
-If taxable is all stocks, Roth is all stocks, and 401k is all bonds…..where do I rebalance?
-How would this asset location play out over time (in retirement) when the equities grow and there is no new 'income' to add to the 401k?
-Any unintended consequences from the chosen asset location?
Appreciate any helpful information that you provide!
No unintended consequences of an significance. You can also do this for a few years and see how it goes.
We have a 60/40 portfolio with taxable all broad-market index stock funds, Roths all index stock funds, and 401(k)/IRA holding all our bond funds plus some stock index funds.
Statistics: Posted by livesoft — Thu Feb 08, 2024 12:26 pm — Replies 4 — Views 194