bundy wrote:The way I see it, since my Roth IRA will grow tax free, I should put in whatever combination is likely to have the largest return over 30 years. As I get closer to retirement, I should use more bonds to decrease risk. So is Vanguard retirement 2045 a suitable choice? Or should I use total bond market since I'll get the growth tax free?
It's suitable if you are comfortable with that level of risk. Total Bond Market currently yields 1.63% - if you are aiming for growth of capital, I would use the Target Fund that will automatically re-balance overtime to a more conservative allocation. I would select a Target fund that holds a minimum of 20% bonds, I think 90% is overly aggressive at your age. Yes, I would put the highest total return fund in the Roth and anything that yields taxable income.