Asset Allocation and Sheltered Accounts
Apologies if this has been covered here, but I've struggled with this for years (a post by Audrey1 in another thread is prompting me to ask).
I am underweighted in some asset classes, but it's because my available sheltered accounts are fully invested and the asset classes I am short on are not efficient in taxable accounts. Until this year at least, I was in a high tax bracket so I have let my taxable:sheltered drive my AA to some extent. However I have consiously shifted the line knowing where my holdings fall on the tax efficiency continuum. How do others resolve this dilemma? Details below, although not sure if it's necessary.
|US Small||13.4%||14.1%||Taxable & TIRA (Sm Val)|
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)