Author Topic: Bonds in SEP or Roth?  (Read 232 times)

Spondulix

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Bonds in SEP or Roth?
« on: July 11, 2018, 03:34:53 PM »
I have a SEP IRA and Roth IRA. I just moved my Roth to Vanguard so need to reallocate funds. Iím thinking of doing my bond portion in the SEP only - does that seem logical? Anything else I should consider?

terran

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Re: Bonds in SEP or Roth?
« Reply #1 on: July 11, 2018, 08:36:48 PM »
Given that stocks have a higher expected return than bonds it seems logical to put stocks in Roth on which you won't pay tax and bonds in the SEP on which you will pay tax.

jacoavluha

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Re: Bonds in SEP or Roth?
« Reply #2 on: July 11, 2018, 08:47:23 PM »
either is reasonable; just don't pretend that $1 of bond allocation in SEP IRA is the same as $1 bond allocation in Roth IRA