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Hello,
I was hoping for clarification on a portfolio question. I am preparing to go it alone with investments for my wife and I, and have thoroughly enjoyed reading this forum and books suggested.
Mid career both aged 46 yrs - looking to work another 12 yrs, and have primarily 403b and Roth IRA accounts for both myself and wife. We both have sizable pensions that will kick in, so although this may look retirement light, we are in a good financial place.
Looking at all accounts (2 x 403b and 2 x Roth IRA totaling ~ $1million) and then breaking into the following funds and % asset contributions (following the lazy portfolio approach).
Total Market Index Fund - 48%
Total International Index Fund - 12%
REITs Index Fund - 5%
Total Bond Market Index Fund - 20%
(TIPS) Inflation-Protected Indexed Bonds - 15%
My main question: With 403b being tax deferred, and Roth tax free upon withdrawal, my newbie understanding was to place major bond contributions into the tax deferred accounts - 403b, and largest growth (Total Market, Total International and REITs) into Roth tax free. The percentage breakdowns of asset contributions will not work out perfectly to put all funds into said accounts - more so I was just curious which account should be "heavy" with what type of fund. Or maybe it doesn't really matter as all accounts are non or delayed taxable.
Sorry to post such a simple question compared with other types of questions posted, clarification would just help us tremendously. Thank you in advance for any and all responses.
I was hoping for clarification on a portfolio question. I am preparing to go it alone with investments for my wife and I, and have thoroughly enjoyed reading this forum and books suggested.
Mid career both aged 46 yrs - looking to work another 12 yrs, and have primarily 403b and Roth IRA accounts for both myself and wife. We both have sizable pensions that will kick in, so although this may look retirement light, we are in a good financial place.
Looking at all accounts (2 x 403b and 2 x Roth IRA totaling ~ $1million) and then breaking into the following funds and % asset contributions (following the lazy portfolio approach).
Total Market Index Fund - 48%
Total International Index Fund - 12%
REITs Index Fund - 5%
Total Bond Market Index Fund - 20%
(TIPS) Inflation-Protected Indexed Bonds - 15%
My main question: With 403b being tax deferred, and Roth tax free upon withdrawal, my newbie understanding was to place major bond contributions into the tax deferred accounts - 403b, and largest growth (Total Market, Total International and REITs) into Roth tax free. The percentage breakdowns of asset contributions will not work out perfectly to put all funds into said accounts - more so I was just curious which account should be "heavy" with what type of fund. Or maybe it doesn't really matter as all accounts are non or delayed taxable.
Sorry to post such a simple question compared with other types of questions posted, clarification would just help us tremendously. Thank you in advance for any and all responses.
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