So I have done a cleanup of my investments over the last few weeks and now that the dust settles, I realise I may need to up the percentage of bonds
I have three accounts
IRA at TD Ameritrade fully funded for this year, 0% bonds
401 K with fidelity through employer 30% bonds (held in VBTIX and VIPIX, some in an interest income fund)
Private Investment account at TD Ameritrade currently 19% bonds (mostly in BND)
I have read that it is better to keep bonds in taxable accounts and stocks in tax deferred acounts if you have a choice, if you believe you will be using your taxable accounts for ER
and if you believe you will be in a lower tax bracket once you start dipping into tax deferred acounts.
So in view of that I am wondering what makes most sense for me, I have 10 Years left to FIRE, if we manage to keep on track.
Options:
- Up my percentage of bond in the private account by using all/most future contributions for bonds (right now my monthly contributions there go into VTI) and keep rebalancing from there once a certain overall percentage has been achieved
- Change my 401 allocations to rebalance over time
- Dedicate next contribution (2014) in ROTH IRA fully to bonds
From what I understand, using my regular TD account makes most sense, but I might toally be missing a point, so I would appreciate any recommendations.
Also, about 80% of my money right now is in the 401k, so I would have to pretty much divert every contribution to the regular account over the next few months into Bonds to rebalance, which means I would be loosing out on cost averging VTI.
Any pointers for further reading, insight or suggestions are highly welcome!!
Thank you!!