The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: Spondulix on July 11, 2018, 03:34:53 PM
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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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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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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