You know, that is a goood question. I upped the bonds in my 401(k) because it was a move I could easily make there that had no tax consequences. We also don’t keep bonds in our taxable account because of the income they generate. I suspect the answer to your question depends on the nature of your accounts. We have a mix of taxable, Roth, and traditional retirement accounts. We did Roth conversions years ago so that money is “seasoned” (i.e. 5 years have passed) so we can pull that out any time. You can also pull out Roth contributions though not gains at any time. I need to look into the question further in the future, but for now my guess is that we will pull bonds from our Roth retirement accounts first.