Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Advice for doing a 75/25 split between various financial accounts
Old 01-16-2018, 05:12 PM   #1
Dryer sheet wannabe
 
Join Date: Jan 2018
Posts: 21
Advice for doing a 75/25 split between various financial accounts

I've decided on a 75 stock index fund/25 bond index fund portfolio overall.

I have the following investments:
Roth IRA
Individual IRA
403 b - 2 different ones
401a

My question is: How do I allocate based on all of the different accounts?
Should I so a 75/25 split with each account? Or some other way?

Any resources where I could read up on this more?

Thanks!
__________________

lsimpson33 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-16-2018, 05:31 PM   #2
Full time employment: Posting here.
 
Join Date: Jan 2008
Location: Flyover America
Posts: 607
From Boggleheads https://www.bogleheads.org/forum/vie...php?f=1&t=6211


Portfolio Construction

After settling on your primary asset allocation you can turn to selecting funds that flesh out your desired asset allocation and placing them in the most tax efficient manner. If you do not have taxable accounts, then tax efficiency isnít a huge concern but it is still a factor that should be considered. It is usually best to consider all of your investments together. If you are married you should usually blend accounts held by both spouses into one unified portfolio.

The best place to start building a portfolio is by making a list of all your current investment accounts and the investments in each account.
Next, start with the account types that offer the most limited investment choices, which are usually 401k and 403b type plans. These plans normally offer limited fund choices, so starting here and building around the best fund choices is often the best idea. Look at all the funds available in your 401k and list the ones with the lowest expense ratio from each category (US equity, international equity, bonds, etc).

Finally, you must consider the tax consequences of investing, especially in taxable accounts. Generally, the most tax efficient way to use your different accounts is (our thanks to Taylor Larimore and David Grabiner for this list):

1. Invest as much as possible in your tax-deferred and tax-free accounts.
2. Put the most tax-inefficient funds in your tax-deferred and tax-free accounts.
3. Use only tax-efficient funds in taxable accounts.
4. If all else is equal, put funds with higher expected returns in tax-free (Roth) accounts in preference to tax-deferred (traditional 401(k), 403(b), traditional IRA) accounts.

Here is a list of securities in approximate order of their tax-efficiency. (Least tax efficient at the top.):
Hi-Yield Bonds
Taxable Bonds
TIPS
REIT Stocks
Stock trading accounts
Balanced Funds
Small-Value stocks
Small-Cap stocks
Large Value stocks
International stocks
Large Growth Stocks
Most stock index funds
Tax-Managed Funds
EE and I-Bonds
Tax-Exempt Bonds
__________________

capjak is offline   Reply With Quote
Old 01-16-2018, 05:32 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 9,299
https://www.bogleheads.org/wiki/Tax-...fund_placement is a great start.


If those are all of your accounts, I would have the Roth be all stocks. The other accounts, I believe, are basically the same in that they are all tax deferred, right? If so, pick the best choices / lowest fees in your 401/403 accounts since you probably have limited choice. Then fill in your own IRA to balance it how you want.
RunningBum is offline   Reply With Quote
Old 01-16-2018, 07:26 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 25,767
If the 403b or 401a offer a stable value fund that pays a decent rate of interest, say 2% or more, then I would load the 25% fixed income component into that stable value fund. Otherwise, fixed income in tax-deferred and all the rest equities.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...target 65/35/0 AA TBD
pb4uski is online now   Reply With Quote
Reply

Tags
403b, index fund, ira distribution, roth ira


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Various sources/types of IRA accounts - OK to combine? stephenson FIRE and Money 2 05-09-2017 04:02 PM
Diversification of Accounts Between Taxable, Tax Deferred, and Tax Free haha FIRE and Money 61 10-26-2010 02:26 PM
AA & withdrawals between taxable and non taxable accounts. ron244 FIRE and Money 14 05-18-2007 05:59 PM
Splitting Your Portfolio Between Different Accounts megacorp-firee FIRE and Money 7 05-11-2007 04:02 PM
split IRA accounts for 72t withdrawals? lb FIRE and Money 4 03-26-2004 01:24 PM

» Quick Links

 
All times are GMT -6. The time now is 11:40 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
×