Author Topic: asset allocation - ROTH IRA vs 401k / Traditional IRA / taxable acct  (Read 1193 times)

Mr Saver 2000

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Does anyone do a different asset allocation for a ROTH IRA vs traditional IRA / 401k / taxable acct.  Currently mine are pretty much the same, mostly VTI and VYM with about 10% small cap (VB).  (I know VTI is a portion small cap)

Does it make since to up the allocation of small cap in the ROTH IRA and lower or $0 out in the traditional IRA / taxable account.  Small cap ETF has more risk but higher reward so would it make sense to hold these in a tax free ROTH? 

I am a married 36 years old with 2 kids hoping to retire by age 50-53.


Thanks

Phenix

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Re: asset allocation - ROTH IRA vs 401k / Traditional IRA / taxable acct
« Reply #1 on: January 10, 2017, 09:58:40 PM »
My taxable account is all ITOT - Total US Stock Market.
All of my international along with some US TSM is in Roth IRAs.
My bond allocation and remaining US TSM allocation are in Traditional IRA and 401k

US TSM is the most tax efficient for taxable.
I believe international has a lot of upward potential which is why I keep it in my Roth.
And bonds shouldn't outpace stocks so it makes sense to keep them in the account I will eventually have to pay tax on.

 

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