Originally Posted by mathjak107
.. i prefered to keep my contributions to the faster growing assets in the 401k and tira where i can convert them over to a roth once i get them .
i saw no point in low paying bonds and no paying money markets to be taking up money that could represent higher growing assets in my retirement money.
our goal is to eventually pass on the roths and pass on the capital gains stuff in the taxable. we are hoping to use little of those assets ...
MJ107......until this yr, this was my idea too. I just learned from LOL here and the bogleheads that this might be backwards. I have never done a simulation to compare the after-tax consequences of each strategy. Have you? My positions are probably like yours since I haven't done anything....still thinking and learning.
I know that if you have an annuity, the after tax returns are very strongly affected by rates of return, time in annuity, and tax rates.....that calculation I have done......but I never combined that w/ an allocation of fixed income.
......and you are completely correct that my late-at-night (my excuse) explanation was not worded clearly.....I left out non-capital taxable assets which might come before capital, unless of course you had a tax loss to exploit. Since I do specific shares sales, I could pick shares w/ no or minimal gains if I didn't have losses.