My simple framework has worked for me for many years:I wonder though, if there’s a simple framework to guide one’s actions maybe at the beginning of each year (when re-balancing/withdrawing/etc). I realize the wiki’s have some of this thinking, but curious if you (or someone) have it distilled to a few “rules” to help guide your actions.
1. In taxable accounts only use broad market, passively-managed, low-expense ratio index funds such as VTI and VEA (and their tax-loss harvesting partners such as VV and SPDW).
2. In tax-deferred accounts, put all one's bonds and other fixed income. But since these accounts tend to be the largest for many folks that will leave room for equities, too, such as VTI, VV, VEA, VEU, AVUV, MTUM, and others.
3. In Roth accounts use mostly equity funds such as the same ones mentioned in 1 and 2 above, but it is OK to occasionally have fixed income temporarily in Roth.
4. If very wealthy and high income, then tax-exempt municapal bond funds can go in taxable if no room is available in tax-deferred.
That's it.
Statistics: Posted by livesoft — Thu Mar 21, 2024 10:16 am — Replies 6 — Views 177