Question regarding asset allocation. This is my set up currently
His 403B max out
His 457B max out
Her 401A about 18k
His roth IRA, haven't made any contributions to this since residency 3 years ago
HSA max
529 about 2k a month
200k in student loans, pay about 5-7k a month
200k in tax deferred accounts
10k in taxable account
100K in cash ( saving for house downpayment)
Vanguard taxable account VTSMX
My question is regarding asset allocation. I am currently 100% equity. I'm 31 y/o. I know bonds are supposed to go into tax deferred and stocks into taxable. I'm not sure I completely understand this when it comes to asset allocation. For example, if i went to 80/20 I would place 20% of my total assets into bonds in the tax deferred account. The only benefit to this would be it would hurt less if the stock market were to crash. But why should this matter to me if my bonds are in a tax deferred account and i wont be touching it for 25+ years?
The way I look at the situation is there are 2 buckets here. One for today's money and the other for retirement. Should I have a seperate asset allocation for my retirement accounts and my non retirement accounts? For example if the market were to crash by 50% shouldnt I have some bonds in my taxable account to help soften the blow? Or is that the purpose of the emergency fund?
I hope this makes sense.
thanks
His 403B max out
His 457B max out
Her 401A about 18k
His roth IRA, haven't made any contributions to this since residency 3 years ago
HSA max
529 about 2k a month
200k in student loans, pay about 5-7k a month
200k in tax deferred accounts
10k in taxable account
100K in cash ( saving for house downpayment)
Vanguard taxable account VTSMX
My question is regarding asset allocation. I am currently 100% equity. I'm 31 y/o. I know bonds are supposed to go into tax deferred and stocks into taxable. I'm not sure I completely understand this when it comes to asset allocation. For example, if i went to 80/20 I would place 20% of my total assets into bonds in the tax deferred account. The only benefit to this would be it would hurt less if the stock market were to crash. But why should this matter to me if my bonds are in a tax deferred account and i wont be touching it for 25+ years?
The way I look at the situation is there are 2 buckets here. One for today's money and the other for retirement. Should I have a seperate asset allocation for my retirement accounts and my non retirement accounts? For example if the market were to crash by 50% shouldnt I have some bonds in my taxable account to help soften the blow? Or is that the purpose of the emergency fund?
I hope this makes sense.
thanks
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