Now that I came up with an AA I am comfortable with, I need to figure out where to hold my TIPS and Bonds.
87% of my funds are in a taxable account, 13% are in a Solo 401k. I have decided I'm most comfortable with a 50/50 AA. I also decided I want to keep my investing as simple as possible so I can get away with an hour worth of re-balancing once a year, and ignore it the rest of the year.
With only 13% of my money in a tax sheltered account, does it make more sense to hold my TIPS there or my Bond Fund? Are there any downsides to holding my TIPS in my 401k?
This is what I am thinking:
05% - FDRXX (Fidelity Cash Reserves)
32% - FIBAX (Fidelity Spartan Intm Tresury Bond Index Fund Adv) - .10% expense ratio
25% - FSTVX (Fidelity Spartan Total Market Index Adv) - .07% expense ratio
25% - FSIVX (Fidelity Spartan International Index Adv) - .07% expense ratio
13% - TIP (ISHARES LEHMAN TIPS)
What do you think? What should I think about before committing to these holdings and this AA?