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Author Topic: Bonds in SEP or Roth?  (Read 1241 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. I’m thinking of doing my bond portion in the SEP only - does that seem logical? Anything else I should consider?
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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.
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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
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