Hi, from reading here and Bogleheads, the advice tends to favor bond and real estate mutual funds for tax-deductible investing. As such, I've just spent a couple of hours going over my allocations in my 401K and 403B accounts. I have rebalanced those funds so my overall investment is roughly 67% stocks, 27% bonds and %6 in real estate. I am 40. This rebalancing allows me to invest in taxable funds without throwing my stock/bond ratio out of whack (I'm aiming for 75%/25% for stocks/bonds). I will direct a portion of my savings account towards the total domestic and international stock funds. Again, my understanding is that it's better to invest in stocks in taxable accounts rather than in bonds and real estate.
I'm not eligible for the traditional IRA this year but I'm good for the Roth. As I do not have any international bond funds, I would like to start. Can I go ahead and invest in the international bond index for my Roth? Even though it's not tax deductible now, since it's still an IRA, will I get protection against dividend income for the tax year? Or should I stay clear of bond funds in general if it's not a tax-deductible investment (for the current tax year)?