Author Topic: Roth 401k Allocation Issue  (Read 1548 times)

WillPen

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Roth 401k Allocation Issue
« on: November 21, 2014, 08:24:40 AM »
My company has a Roth 401k offering that I want to jump in on. Unfortunately, whatever asset allocation I choose will go towards my Pre-tax 401k and the Roth. So if I'm 80/20 Stocks/Bonds, each gets the same.

Having bonds in my Roth isn't ideal, but at least I have the option. I can always sweep everything over to the funds I want. Just maybe not right away. What do y'all think?

GGNoob

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Re: Roth 401k Allocation Issue
« Reply #1 on: November 21, 2014, 10:18:52 AM »
Sure, there might be a slight benefit of having stocks vs a bonds in a Roth, but it shouldn't be much of an issue. If that is your preferred allocation anyhow, I wouldn't worry about it. Personally, I feel bonds in any retirement account is a waste since I'd rather get the growth of stocks in my tax-advantaged accounts. The only bonds I own are muni bonds in my emergency fund.

What is your tax bracket? Does a Roth 401k even make sense for you?

 

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