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Learning, Sharing, and Teaching => Investor Alley => Topic started by: the_fixer on October 18, 2018, 11:46:39 AM

Title: Pre-tax vs after tax investment choices
Post by: the_fixer on October 18, 2018, 11:46:39 AM

Hello,

Wife has an IRA with Fidelity, all pre-tax 401k money and we are getting ready to change her investments.

We were planning to do one of the lazy portfolios and as I have been researching I came across this info from Paul Merriman and he has two different categories one for pre-tax  and one for after tax.

https://paulmerriman.com/vanguard/

I would like to understand why he would differentiate between the two and if we need to select different options based on pre-tax (the wife) and after tax (myself) accounts?

We will likely go with a simple 3 or 4 lazy portfolio

 feel like I am missing something tax related and do not want to mess up.

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Title: Re: Pre-tax vs after tax investment choices
Post by: MDM on October 18, 2018, 04:32:37 PM

Quote from: the_fixer on October 18, 2018, 11:46:39 AM

I would like to understand why he would differentiate between the two and if we need to select different options based on pre-tax (the wife) and after tax (myself) accounts?

It depends how finely you want to sharpen your pencil.

See Tax-efficient fund placement (https://www.bogleheads.org/wiki/Tax-efficient_fund_placement) for some details.

Title: Re: Pre-tax vs after tax investment choices
Post by: the_fixer on October 18, 2018, 09:22:42 PM

Thank you for the pointer I appreciate it.

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