bertilak wrote: ↑Tue Oct 13, 2020 10:15 am
manlymatt83 wrote: ↑Tue Oct 13, 2020 10:06 am
For those holding VT/BNDW as part of the "three-fund" -- is it OK to hold VT/BNDW in both taxable and tax-advantaged so that rebalancing between VT and BNDW can only be done in tax advantaged and you never have to touch the taxable holdings?
Are you accumulating or decumulating? Depending, you can either use new investments or new distributions to maintain your AA.
If you are just coasting along and need to sell and buy to maintain your AA then what you are doing is a reasonable approach.
I am accumulating. My tax advangted space is limited (~$6000/year) so I will have to continue holding VT and BNDW in taxable for a large portion of my portfolio. Up until now, I have always avoided buying VT and BNDW ALSO in my tax advantaged ... just making sure that's a sane practice if I start doing that alongside my taxable holdings.
Hadn't thought about new contributions. You're right - I should be able to do that for at least a few more years, but at some point, new contributions may not be enough to complete a rebalance (one can hope).