I will tell you, this site has had quite an impact on me..All good, of course. Anyway, I feel I have a better grasp of the tax-efficiency that goes along with investing. I guess my concern with the total market index is the level of aggression. I max out my VG Roth each year, but I have thought about eventually exchanging for the LifeStrategy Growth as my Roth IRA. I would rather risk more growth with LIfeStrategy than be forced to become more conservative over time with 2040. Like i've said, I am a "stay the course" and "buy and hold" investor, so I really dont like moving much around once I get it set. To be honest, I am in the process of getting set since I joined this site. My knowledge is growing by the day!
I have the following in tax-deferred accounts:
Roth TSP 2040 (do not max out each year) = $5,500 in account
Roth IRA- VG 2040 (investor) max out each year = $40,000 in account
I have the following in taxable account:
Wellington (admiral) = $60,000 in account
I take it that I should exchange the Wellington for the total stock market index for better tax efficiency in this taxable account? What about the LifeStrategy Growth as my taxable account? I realize it's 80/20, but it seems less volatile than total stock market. Is 20% bonds in a taxable account that big of deal? It is currently 40%, which seems to be a definite issue that needs to be addressed. Keep in mind, I will be putting money each month into this taxable account, so I want to make sure I get it right. I really just want a simple portfolio with right asset allocation, low cost, and tax efficiency. I am on the right path, but I could use some fine-tuning.
“There seems to be some perverse human characteristic that likes to make easy things difficult. ” ― Warren Buffett