Asset allocation and ROTH accounts

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Topic Author
jtelwood
Posts: 191
Joined: Wed Jun 11, 2008 9:45 am

Asset allocation and ROTH accounts

Post by jtelwood »

My portfolio consists of 2 stock funds (total stock market index and total international stock index) and several VG bond funds. I have both traditional and roth ira's as well as a small taxable stock fund in the portfolio. The asset allocation for the entire portfolio is 50/50. The total international stock index is 30% of equities.

Until I retired several years ago, my roth contributions were always made to a stock fund. I think I had read that one should place investments with the highest expected returns in ROTH accounts. When I re-balanced the portfolio, I had always done that within my traditional IRA account, leaving the roth accounts in stock funds. I'm now wondering if my present allocation of 50/50 should also be reflected in the ROTH accounts, as well as my international exposure being 30% of equities.

Any thoughts and guidance would be appreciated.

jte
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WoodSpinner
Posts: 3505
Joined: Mon Feb 27, 2017 12:15 pm

Re: Asset allocation and ROTH accounts

Post by WoodSpinner »

Jte,

I manage the AA allocation across all of my portfolios and don’t try to match each account to the allocation. Instead I use the BH guide and my own retirement cash flow plan to determine where to hold certain types of assets.

My Roth is pretty similar to yours and my AA similar as well.

What do yosee as the advantage of holding bonds in Roth?

I don’t today but am always wondering if I have a new lesson to learn.

WoodSpinner :?:
WoodSpinner
Topic Author
jtelwood
Posts: 191
Joined: Wed Jun 11, 2008 9:45 am

Re: Asset allocation and ROTH accounts

Post by jtelwood »

If I needed to withdraw money from a ROTH and the stock market was down, I would withdraw from the bond fund.
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