Midpack
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Apologies if this has been covered here, but I've struggled with this for years (a post by Audrey1 in another thread is prompting me to ask).
I am underweighted in some asset classes, but it's because my available sheltered accounts are fully invested and the asset classes I am short on are not efficient in taxable accounts. Until this year at least, I was in a high tax bracket so I have let my taxable:sheltered drive my AA to some extent. However I have consiously shifted the line knowing where my holdings fall on the tax efficiency continuum. How do others resolve this dilemma? Details below, although not sure if it's necessary.
I am underweighted in some asset classes, but it's because my available sheltered accounts are fully invested and the asset classes I am short on are not efficient in taxable accounts. Until this year at least, I was in a high tax bracket so I have let my taxable:sheltered drive my AA to some extent. However I have consiously shifted the line knowing where my holdings fall on the tax efficiency continuum. How do others resolve this dilemma? Details below, although not sure if it's necessary.
Class | Target | Actual | Acct |
US Large | 23.4% | 25.7% | Taxable |
US Small | 13.4% | 14.1% | Taxable & TIRA (Sm Val) |
Intl | 13.4% | 13.0% | Taxable |
Emer Mkts | 6.7% | 7.1% | Taxable |
REIT | 3.3% | 2.0% | TIRA |
VGENX | 3.3% | 2.2% | TIRA |
Bonds | 32.5% | 30.2% | 401k |
Cash | 3.9% | 5.9% | Taxable |