Given the relative size of the taxable portfolio (29%), I think holding the cash in a tax-deferred account is fine. Even if the taxable account drops by half, it will still be around 14% of 1.54M.
Approximate size: 1.54M
Taxable
5.69% iShares S&P Total US Stock Market ETF (ITOT) 0.03% ER
23.30% iShares Core MSCI Total International Stock (IXUS) 0.07% ER
... keep the emergency fund, downpayment and car sinking fund (about 14.7% the size of the above portfolio)
...
2. Would it be reasonable to keep the emergency fund, and sinking fund for downpayment/car in a tax deferred account, and purchasing say US/international total stock in taxable to reduce income tax on the cash? I have seen some forum members discuss this, as well as the wiki article ( https://www.bogleheads.org/wiki/Placing ... ed_account ). In the coming recession, perhaps reduction in value of equity in taxable might threaten the ability to convert to cash. Maybe it is wiser to keep cash in taxable?
Regards,
Statistics: Posted by retired@50 — Sat Aug 10, 2024 11:57 am — Replies 1 — Views 75
