Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
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My wife wants to invest her Roth IRA in a1or 2 funds portfolio. She doesn't like international bonds. She wants no more than 20% in international stocks. She is thinking to add VTIAX to Vbiax with the allocation of 85% VBIAX & 15% VTIAX. She is 39 years old. Is it a good idea? Thanks.
If an investor is better off keeping their bonds in 401k, then they'll also be best off with the bonds in the Roth since, given equal tax brackets the results are identical. It makes no sense to choose stocks vs bonds in a tax-advantaged account based on whether the taxes have been paid or will have to be paid. I suppose there might be an RMD argument but that's like a second-order effect.
"... so high a present discounted value of wealth, it is only prudent for him to put more into common stocks compared to his present tangible wealth, borrowing if necessary" - Paul Samuelson