Allocating stocks in tax-differed accounts.
I was presented with a theory that for a mid-age family, say mid-50th, it would make sense to allocate bonds in taxable accounts and stocks into tax-deferred accounts.
The idea is that stocks will grow faster and that will be beneficial in long run, RMD, taxes etc.
It feels against common logic and wrong to me, but I don't know all cons about this idea.
One can be that bonds paying dividends in taxable accounts, will be taxed and that's it's not a good idea?
Anyone care to add pros/cons ?
“The problem with the world is that the intelligent people are full of doubt, while the stupid people are full of confidence.”