Portfolio suggestions

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Mario2222
Posts: 64
Joined: Mon Dec 24, 2018 12:16 am

Portfolio suggestions

Post by Mario2222 »

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.
tenkuky
Posts: 1230
Joined: Sun Dec 14, 2014 4:28 pm

Re: Portfolio suggestions

Post by tenkuky »

Generally, only equities in Roth so a combination of Total Market and Total international in 80:20 ratio is fine.
No need for balanced fund which has bonds, save bonds for 401K or other pre-tax vehicles.
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Steve Reading
Posts: 2500
Joined: Fri Nov 16, 2018 10:20 pm

Re: Portfolio suggestions

Post by Steve Reading »

tenkuky wrote: Tue Sep 08, 2020 10:14 am Generally, only equities in Roth so a combination of Total Market and Total international in 80:20 ratio is fine.
No need for balanced fund which has bonds, save bonds for 401K or other pre-tax vehicles.
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
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