Personal Investments • Bond Choice

Bonds do not belong in Roth accounts, period! The entire deal with Roth is that the growth in those accounts is tax free. Why do you want to choke off that growth by filling it with bonds, even partially?

Increase the bond investment in the employer plan to compensate, but Roth IRA == 100% stocks.

If the investor changes all of the tax-deferred to bonds and there still isn't enough room? How about then?

Still not enough room for all the bonds you want in deferred? To me it would depend on the nature of the bonds. Treasuries I'd do taxable, but something more ambitious like EM, Floating Rate, Convertibles, High Yield... I'd do Roth.

What if the Fidelity bond choice (FXNAX) in tax-deferred can be bought in the Roth. There are already treasuries in taxable. KISS with FXNAX in the Roths, same as the employer plan?

I would only put the kind of bonds funds I mentioned - something jazzier than a total U.S. bond index - in a Roth. And I'd only do Treasuries (or a Treasury fund) in taxable. I guess if I had high enough income maybe a muni fund in taxable? But I haven't thought much about that.

Statistics: Posted by tibbitts — Tue Oct 01, 2024 7:40 pm — Replies 7 — Views 157

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