I currently have all of my bonds in my tax-advantaged accounts (Vanguard Total Bond Index, and Vanguard Inflation Protected Treasuries). I have all of my equities (Vanguard Total Stock Market Index and Vanguard Total International Stock Index) in my taxable accounts. This is to make everything as tax-efficient as possible). I also have some cash in a Vanguard Money Market. It so happens that the current break down is the way I wish my asset allocation to be (approximately 35/55/10 in equity/bonds/cash).
My question is this: I am no longer contributing to my tax-advantaged accounts. What is the best way to perform re-balancing in these circumstances when I determine it is time to do so? If I need more bonds should I just go ahead and purchase them in my taxable accounts? If I need more equities should I purchase them in my tax-advantaged accounts? Should I always keep some of each in my tax-advantaged account so that I can exchange between bonds and equities without causing a taxable event?
Thanks for your help.
My question is this: I am no longer contributing to my tax-advantaged accounts. What is the best way to perform re-balancing in these circumstances when I determine it is time to do so? If I need more bonds should I just go ahead and purchase them in my taxable accounts? If I need more equities should I purchase them in my tax-advantaged accounts? Should I always keep some of each in my tax-advantaged account so that I can exchange between bonds and equities without causing a taxable event?
Thanks for your help.