What do you hold in your IRA and Why?

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BV3273
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What do you hold in your IRA and Why?

Post by BV3273 » Fri Jun 28, 2019 11:13 am

I think it’d be a fun exercise to see what other Bogleheads hold in their tax advantaged accounts, specifically their IRAs. Since it has a relatively low limit I find it extremely interesting.

I currently don’t have an IRA and I am working on a list of Funds/ETFs that I am looking to purchase when I do set it up. Specifically bond funds since I don’t hold any in my 401k.

Broken Man 1999
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Re: What do you hold in your IRA and Why?

Post by Broken Man 1999 » Fri Jun 28, 2019 12:26 pm

DW and I hold like investments in our IRAs, with the exception I hold some individual stocks. We are at 50% equities / 50% bonds AA.

We hold Total Stock Market Index ETF, Total Bond Market Index ETF, Total International Stock Market Index ETF, Intermediate-term Treasury Index fund, Short-term Treasury Index fund. Those are the investments we hold in our Traditional IRAs, and our Roth IRAs.

We do have other bond holdings in our Variable Annuity (Total Bond Market Index), and in our US Savings Bonds Series I.

We hold what we do because we will earn the market returns on our portfolio, and, along with our SS benefits, that is good enough for us to have a comfortable retirement, and hopefully leave some legacy gifts to our children and grandchildren.

Broken Man 1999
Last edited by Broken Man 1999 on Fri Jun 28, 2019 12:28 pm, edited 1 time in total.
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Toons
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Re: What do you hold in your IRA and Why?

Post by Toons » Fri Jun 28, 2019 12:28 pm

Growth Mutual Funds
Why?
For Growth Of Capital,


:happy
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FelixTheCat
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Re: What do you hold in your IRA and Why?

Post by FelixTheCat » Fri Jun 28, 2019 12:36 pm

Traditional IRA ~ Total Bond Market Index. Safety and don't want to pay the government on interest.
Roth IRA ~ Total Stock Market Index. Growth and don't want to pay the government on dividends.
Felix is a wonderful, wonderful cat.

livesoft
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Re: What do you hold in your IRA and Why?

Post by livesoft » Fri Jun 28, 2019 1:36 pm

I no longer have a traditional IRA, but my spouse's tax-deferred IRA and tax-deferred 401(k) are both 100% VBTLX Vanguard Total Bond Market Index fund. Both accounts are set to have distributions automatically reinvested.

Why? Don't want to pay taxes on monthly bond interest. Want one single fund in these accounts, so I don't have think about them. We can do rebalancing of asset allocation in another account. We have equities only in taxable account. We have equities only in Roth IRAs. I have a 401(k) with one ETF from every asset class that I want to own, so this account is where all rebalancing takes place.
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lakpr
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Re: What do you hold in your IRA and Why?

Post by lakpr » Fri Jun 28, 2019 1:40 pm

VTSAX ( Vanguard Total Stock Market Index) in my Roth IRA. No traditional IRAs, I have to do back door Roths so rolled over my Rollover IRA to 401k. Why? Because I want those assets with the greatest possibility of growth in my Roth. That is US equities.

123
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Re: What do you hold in your IRA and Why?

Post by 123 » Fri Jun 28, 2019 4:15 pm

In our significant traditional IRA accounts we hold a single Vanguard LifeStrategy funds. We do this for the sake of automatic asset allocation maintenance and as a contingency against the potential loss of the primary household finance manager. The accounts look a lot simpler to the potential surviving spouse if there is only a single holding. It would be silly to decide to get an AUM fee financial adviser if there is only a single holding.

Previously we did a 3 fund mix but decided the higher cost of the LifeStrategy option was worth it for contingency purposes.
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Broken Man 1999
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Re: What do you hold in your IRA and Why?

Post by Broken Man 1999 » Fri Jun 28, 2019 5:53 pm

123 wrote:
Fri Jun 28, 2019 4:15 pm
In our significant traditional IRA accounts we hold a single Vanguard LifeStrategy funds. We do this for the sake of automatic asset allocation maintenance and as a contingency against the potential loss of the primary household finance manager. The accounts look a lot simpler to the potential surviving spouse if there is only a single holding. It would be silly to decide to get an AUM fee financial adviser if there is only a single holding.

Previously we did a 3 fund mix but decided the higher cost of the LifeStrategy option was worth it for contingency purposes.
I exited the target retirement funds a few years ago, to cut ERs.

But, I plan to go back to a fund holding all assets for the same reason you have noted, simplicity for myself and for the person taking over our administration duties of our portfolio. Just not yet.

Broken Man 1999
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tomd37
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Re: What do you hold in your IRA and Why?

Post by tomd37 » Fri Jun 28, 2019 6:21 pm

At an average age of 83, we hold just two funds in our portfolio. The portfolio is 95% traditional IRA and a 5% taxable investment account and consists of only Vanguard Total Stock Market Index (VTSAX) and Vanguard Total Bond Market Index (VBTLX) in a 40/60 stock/bond ratio. I/we want it as simple as possible for when one of us passes and we do not want to get into international stocks and bonds, so no LifeStrategy or Target funds are used nor contemplated. :moneybag. We take our annual RMDs and make use of QCDs from those RMDs to reduce federal taxes and continue and increase our charitable contributions.
Last edited by tomd37 on Fri Jun 28, 2019 7:40 pm, edited 1 time in total.
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ruralavalon
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Re: What do you hold in your IRA and Why?

Post by ruralavalon » Fri Jun 28, 2019 7:28 pm

BV3273 wrote:
Fri Jun 28, 2019 11:13 am
I think it’d be a fun exercise to see what other Bogleheads hold in their tax advantaged accounts, specifically their IRAs. Since it has a relatively low limit I find it extremely interesting.

I currently don’t have an IRA and I am working on a list of Funds/ETFs that I am looking to purchase when I do set it up. Specifically bond funds since I don’t hold any in my 401k.
Don't pick funds for the IRA oinisolation. It may be better to have your bond allocation in your 401k, depending on the funds offerd in your plan..

It is often better to coordinate investments across all accounts, in other words treat all accounts together as a single unified portfolio, rather than view each account separately. Select just one or two of the better funds (most diversified + lower expense ratio) in the work-based account (401k, 403b, 457, SIMPLE IRA, TSP etc.), where the choices offered are limited. The better fund is often an S&P 500 index fund, which may be the only low-cost index fund offered in a plan. Often there is no good international stock fund offered in a work-based plan.

Then complete the rest of the asset allocation using the nearly unlimited choices available in your IRA or any a taxable account, depending on what is missing in the work-based account.

This approach lets you avoid having to use poor, sub-optimal or high expense funds often found in work-based plans. Do not try to put all components of the asset allocation in every account. Wiki article, "Asset allocation in multiple accounts".

This approach also allows for better tax-efficiency if you use later add taxable account. Wiki article, "Tax-efficient Fund Placement".
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

tony_roach
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Re: What do you hold in your IRA and Why?

Post by tony_roach » Fri Jun 28, 2019 7:48 pm

Total Stock Market (FSKAX) in my Fidelity Roth IRA
Last edited by tony_roach on Sat Jun 29, 2019 9:00 am, edited 1 time in total.

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Peter Foley
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Re: What do you hold in your IRA and Why?

Post by Peter Foley » Fri Jun 28, 2019 8:01 pm

In my traditional IRA I hold total bond fund and CD's = I'm retired, nearing RMD's and will direct my RMD's to charities (QCDs). I have purposefully funded the IRA for that purpose.

I also have a 457 account in which I hold S&P 500 index, Total International and stable value.

nolesrule
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Re: What do you hold in your IRA and Why?

Post by nolesrule » Fri Jun 28, 2019 8:22 pm

We hold Total International Stock Fund in our Roth IRAs. Why? Because the International options aren't that good in our 401k, so we're trying to reduce it and possibly eliminate it in the 401k. We also hold it as part of our taxable account.

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Re: What do you hold in your IRA and Why?

Post by Ferdinand2014 » Fri Jun 28, 2019 8:32 pm

DW 403b: 100% NINDX (Columbia S&P 500 index fund). (ER .2) Why? Only index fund in her 403b and I like the S&P 500.

My SEP and rollover IRA: 100% FXAIX (Fido 500 index fund). (ER .015) Why? I like the S&P 500 and its dirt cheap.

1.) Simplicity
2.) Dirt cheap
3.) Like things that grow to be growing tax deferred.
4.) Prefer large cap
5.) Prefer methodology of S&P 500 with market cap size, liquidity and positive earnings requirements.
6.) Taxable holds 100% of my fixed income all in T-Bills and treasury only MMF’s.
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grabiner
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Re: What do you hold in your IRA and Why?

Post by grabiner » Fri Jun 28, 2019 8:33 pm

My Roth IRA holds my most tax-inefficient funds: Vanguard REIT Index, Vanguard Global Real Estate, and Vanguard Factor Value ETF (VFVA). I'm not sure of the long-term tax-efficiency of VFVA, but I do expect it to have higher dividend yields than blend funds; my taxable account is all US and foreign blend indexes. (Bonds are also tax-inefficient, particularly since I live in a high-tax state with no low-cost muni fund, but I don't need to hold bonds in my IRA because I hold them in my employer plan.)

The Roth IRA isn't actually that small; it holds the growth of 24 years of my contributions, plus rollovers from several old employer plans which I converted.
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BV3273
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Re: What do you hold in your IRA and Why?

Post by BV3273 » Fri Jun 28, 2019 8:40 pm

ruralavalon wrote:
Fri Jun 28, 2019 7:28 pm
BV3273 wrote:
Fri Jun 28, 2019 11:13 am
I think it’d be a fun exercise to see what other Bogleheads hold in their tax advantaged accounts, specifically their IRAs. Since it has a relatively low limit I find it extremely interesting.

I currently don’t have an IRA and I am working on a list of Funds/ETFs that I am looking to purchase when I do set it up. Specifically bond funds since I don’t hold any in my 401k.
Don't pick funds for the IRA oinisolation. It may be better to have your bond allocation in your 401k, depending on the funds offerd in your plan..

It is often better to coordinate investments across all accounts, in other words treat all accounts together as a single unified portfolio, rather than view each account separately. Select just one or two of the better funds (most diversified + lower expense ratio) in the work-based account (401k, 403b, 457, SIMPLE IRA, TSP etc.), where the choices offered are limited. The better fund is often an S&P 500 index fund, which may be the only low-cost index fund offered in a plan. Often there is no good international stock fund offered in a work-based plan.

Then complete the rest of the asset allocation using the nearly unlimited choices available in your IRA or any a taxable account, depending on what is missing in the work-based account.

This approach lets you avoid having to use poor, sub-optimal or high expense funds often found in work-based plans. Do not try to put all components of the asset allocation in every account. Wiki article, "Asset allocation in multiple accounts".

This approach also allows for better tax-efficiency if you use later add taxable account. Wiki article, "Tax-efficient Fund Placement".
Valid point. I have as you mentioned a low cost S&P 500 fund and VWILX available in my 401k. The bond option is not very good. Hence my thought to put it in my IRA when I open it.

Oldschool
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Re: What do you hold in your IRA and Why?

Post by Oldschool » Fri Jun 28, 2019 9:29 pm

75% VTSAX
25%. VBTLX

MotoTrojan
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Re: What do you hold in your IRA and Why?

Post by MotoTrojan » Fri Jun 28, 2019 9:31 pm

100% of my IRA (Roth) is in 3x leveraged ETFs.

timboo
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Re: What do you hold in your IRA and Why?

Post by timboo » Fri Jun 28, 2019 10:03 pm

My IRA is 56% Vanguard Intermediate Term Investment Grade Bond, 30% Vanguard Total Bond Market Index, and 14% Vanguard Total International Stock Index. With my other accounts that put my total AA at about 68/32 currently. My investments other than the ROTH IRA or work retirement plan is all stock mutual funds.

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AerialWombat
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Re: What do you hold in your IRA and Why?

Post by AerialWombat » Fri Jun 28, 2019 10:42 pm

Roth IRA at Fidelity is my smallest account, opened this year. So, only $6k put in. Evenly split between Fidelity Capital & Income and Fidelity Floating Rate funds.

I had grand plans to do a couple more things at Fidelity, but it’s not going to happen. So I may move this account to Vanguard for simplicity here soon. If I do that, I’ll sell the funds, move the Roth in cash, and put it all in to Vanguard High Yield Corporate (VWEHX).

Yes, I’m a yield chasin’ junk lover. :)
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ruralavalon
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Re: What do you hold in your IRA and Why?

Post by ruralavalon » Sat Jun 29, 2019 7:15 am

BV3273 wrote:
Fri Jun 28, 2019 8:40 pm
ruralavalon wrote:
Fri Jun 28, 2019 7:28 pm
BV3273 wrote:
Fri Jun 28, 2019 11:13 am
I think it’d be a fun exercise to see what other Bogleheads hold in their tax advantaged accounts, specifically their IRAs. Since it has a relatively low limit I find it extremely interesting.

I currently don’t have an IRA and I am working on a list of Funds/ETFs that I am looking to purchase when I do set it up. Specifically bond funds since I don’t hold any in my 401k.
Don't pick funds for the IRA oinisolation. It may be better to have your bond allocation in your 401k, depending on the funds offerd in your plan.

It is often better to coordinate investments across all accounts, in other words treat all accounts together as a single unified portfolio, rather than view each account separately. Select just one or two of the better funds (most diversified + lower expense ratio) in the work-based account (401k, 403b, 457, SIMPLE IRA, TSP etc.), where the choices offered are limited. The better fund is often an S&P 500 index fund, which may be the only low-cost index fund offered in a plan. Often there is no good international stock fund offered in a work-based plan.

Then complete the rest of the asset allocation using the nearly unlimited choices available in your IRA or any a taxable account, depending on what is missing in the work-based account.

This approach lets you avoid having to use poor, sub-optimal or high expense funds often found in work-based plans. Do not try to put all components of the asset allocation in every account. Wiki article, "Asset allocation in multiple accounts".

This approach also allows for better tax-efficiency if you use later add taxable account. Wiki article, "Tax-efficient Fund Placement".
Valid point. I have as you mentioned a low cost S&P 500 fund and VWILX available in my 401k. The bond option is not very good. Hence my thought to put it in my IRA when I open it.
Although actively managed Vanguard International Growth Adm (VWILX) ER 0.32% is a nice international stock fund with a fairly low expense ratio.

What bond or stable value funds are offered in your 401k? What is the rate of return on any stable value fund offered? Please give fund names, tickers and expense ratios. I have learned to ask when people say funds in a 401k are "not very good", often it turns out that there is something useable.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Leroy Jones
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Re: What do you hold in your IRA and Why?

Post by Leroy Jones » Sat Jun 29, 2019 7:40 am

We have two accounts in our IRA's. In our TIRA we hold VSMGX Vanguard Life Strategy Moderate Growth, 67% of our retirement accounts. In our RIRA's we hold VWIAX Wellesley about 33% of our retirement accounts. This give us a total ratio 53/47 stocks/bonds. This is simple to maintain as we each only have 2 accounts and they have had decent performance since joining Vanguard 6 years ago.
Leroy Jones :sharebeer

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Re: What do you hold in your IRA and Why?

Post by Grogs » Sat Jun 29, 2019 9:58 am

I hold a 50/50 mix of VTSAX (total stock market) and VTIAX (total international stock market) in my Roth IRA. It's pretty small still, so I rebalance it back to 50/50 every year with my contributions. Somewhat surprisingly, it's still at exactly now 50/50 after contributing $6k back on January 2nd.

I hold 100% VTSAX in my taxable account unless I Tax Loss Harvest into something else for a while. In my 401k, I hold a 4-fund portfolio of S&P 500, small caps, total international, and total US Bond market. Because my 401k is ~50% of holdings, I'm able to do all of my rebalancing in that account to keep stocks:bonds and US:International at my desired AA.

latak215
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Re: What do you hold in your IRA and Why?

Post by latak215 » Sat Jun 29, 2019 10:19 am

Started 90% high div stock etf(vym) and 10% bond etf (vclt) but now 50 50 as intimidated by recession buzz, these etfs because it is possible to sell covered calls in upswings.

jfalconsp
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Re: What do you hold in your IRA and Why?

Post by jfalconsp » Sat Jun 29, 2019 10:23 am

100% Schwab Total Stock Market Index (SWTSX) in mine and spouse’s Roth IRAs.

Dandy
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Re: What do you hold in your IRA and Why?

Post by Dandy » Sat Jun 29, 2019 10:38 am

Currently 71

Fed MMKT
Balanced Index
Infl. Protection
Intmed Treasury
Shrt Trm Bond Index
Shrt Trm Treasury
Wesseley Income
CD Ladder

Taxable account is mostly equities so to have the overall allocation I want, the TIRA needs to be fixed income heavy. I am fortunate to have pension and SS almost equal our normal expense run rate. RMDs for the most part are extra and extra taxes so don't need much growth in that account.

I also roughly follow Dr. Wm Bernstein's idea of having enough "safe" fixed income set aside to last my wife (should I die first and pension is cut by 50%) until she is 90. My short term fixed income in my TIRA is part of that plan.

Finally, we should have enough assets and income to last so we don't have any need to take much risk. Overall allocation is about 43/57. RMDs will tend to push the equity allocation higher over time as fixed income heavy TIRA draws down and taxable equities outperform.

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David Jay
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Re: What do you hold in your IRA and Why?

Post by David Jay » Sat Jun 29, 2019 10:43 am

BV3273 wrote:
Fri Jun 28, 2019 11:13 am
Since it has a relatively low limit I find it extremely interesting.
Wait, there’s a limit on how much I can have in my IRA?
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

flyer398
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Re: What do you hold in your IRA and Why?

Post by flyer398 » Sat Jun 29, 2019 10:51 am

VBIAX in traditional IRA. My wife's is in Roth IRA. Simple balanced fund to have. About 60%stocks/40%bonds. I don't have to research and manually create a portfolio with this mix. It's all done for me. Low fees. Some dividends paid out quarterly. 4 star fund from Morningstar. We are about 4 yrs or so from retirement.

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Re: What do you hold in your IRA and Why?

Post by Taylor Larimore » Sat Jun 29, 2019 10:55 am

BV3273 wrote:
Fri Jun 28, 2019 11:13 am
I think it’d be a fun exercise to see what other Bogleheads hold in their tax advantaged accounts, specifically their IRAs. Since it has a relatively low limit I find it extremely interesting.

I currently don’t have an IRA and I am working on a list of Funds/ETFs that I am looking to purchase when I do set it up. Specifically bond funds since I don’t hold any in my 401k.
BV3273:

I hold tax-inefficient Vanguard Total Bond Market Index Fund in my IRA and tax-efficient Vanguard Total Stock Market in my taxable account. This study explains why:

http://www.efficientfrontier.com/ef/704 ... arkOpt.pdf

Best wishes
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

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Re: What do you hold in your IRA and Why?

Post by ruralavalon » Sat Jun 29, 2019 12:54 pm

Retired.

My Roth IRA holds Vanguard Small-cap Value Index Fund Admiral (VSIAX).

Wife's Roth IRA holds Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX).

My rollover IRA holds Vanguard Intermediate-term Bond Index Fund Admiral Shares (VBILX), Vanguard Total International Stock Index Fund Admiral Shares (VTIAX), and Vanguard Total Stock Market Index Fund Admiral (VTSAX).

Our joint taxable account holds Vanguard Total International Stock Index Fund Admiral Shares (VTIAX).

Why? Wiki article, "Tax-efficient FUnd Placement" .
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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Re: What do you hold in your IRA and Why?

Post by 02nz » Sat Jun 29, 2019 1:16 pm

Vanguard Total Stock Market ETF (VTI)
Vanguard Emerging Markets ETF (VWO): This is to supplement the TSP I fund, which currently has no EM exposure; once that changes I'll get rid of VWO and rebalance accordingly)
PRIMECAP Odyssey Aggressive Growth: My only remaining active holding. Performance has been stellar; I started buying it around 2009. It can be tax-inefficient so I'm holding it in my Roth IRA rather than in taxable, where I first bought this. Performance hasn't been great the last year or so, but the fund has had stretches like that before.

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BV3273
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Re: What do you hold in your IRA and Why?

Post by BV3273 » Sat Jun 29, 2019 2:06 pm

David Jay wrote:
Sat Jun 29, 2019 10:43 am
BV3273 wrote:
Fri Jun 28, 2019 11:13 am
Since it has a relatively low limit I find it extremely interesting.
Wait, there’s a limit on how much I can have in my IRA?
Limit as in how much you can contribute annually.

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GerryL
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Re: What do you hold in your IRA and Why?

Post by GerryL » Sat Jun 29, 2019 2:17 pm

My IRA includes all the money contributed over the years to my 401k. Since it holds the bulk of my retirement savings, it is set up as a basic 4-fund index portfolio. After consulting with a Vanguard advisor, my Roth is all international stock fund. I also have a taxable account with Balanced Index fund. Keeps things simple, since my overall portfolio is 60/40.

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Re: What do you hold in your IRA and Why?

Post by mindboggling » Sat Jun 29, 2019 2:18 pm

66 y/o and retired.

Trad. IRA: Vanguard LifeStrategy Income (20/80), Vanguard Short-term Bond
Rollover IRA: Vanguard LifeStrategy Income (20/80)
Roth IRA: Vanguard LifeStrategy Growth (80/20)
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David Jay
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Re: What do you hold in your IRA and Why?

Post by David Jay » Sat Jun 29, 2019 3:57 pm

BV3273 wrote:
Sat Jun 29, 2019 2:06 pm
David Jay wrote:
Sat Jun 29, 2019 10:43 am
BV3273 wrote:
Fri Jun 28, 2019 11:13 am
Since it has a relatively low limit I find it extremely interesting.
Wait, there’s a limit on how much I can have in my IRA?
Limit as in how much you can contribute annually.
That was tongue in cheek. I’ve never made a contribution to my tIRA, but it holds about 80% of my entire portfolio via rollovers from employer plans.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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BV3273
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Re: What do you hold in your IRA and Why?

Post by BV3273 » Sat Jun 29, 2019 7:12 pm

David Jay wrote:
Sat Jun 29, 2019 3:57 pm
BV3273 wrote:
Sat Jun 29, 2019 2:06 pm
David Jay wrote:
Sat Jun 29, 2019 10:43 am
BV3273 wrote:
Fri Jun 28, 2019 11:13 am
Since it has a relatively low limit I find it extremely interesting.
Wait, there’s a limit on how much I can have in my IRA?
Limit as in how much you can contribute annually.
That was tongue in cheek. I’ve never made a contribution to my tIRA, but it holds about 80% of my entire portfolio via rollovers from employer plans.
Got it lol.

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scubadiver
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Re: What do you hold in your IRA and Why?

Post by scubadiver » Sat Jun 29, 2019 8:34 pm

In our traditional and rollover IRAs, my wife and I hold VTSAX, VTIAX and VBTLX with an approximate 60 / 15 / 25 allocation.

In our Roth IRAs we hold VTTHX 2035 target retirement fund.

We like the costs and simplicity, and the asset allocation aligns with our risk tolerance and retirement timelines.

Scubadiver

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Re: What do you hold in your IRA and Why?

Post by dh » Sat Jun 29, 2019 8:42 pm

I am going to preface my response in saying that my IRA only represents 3.7% of my overall portfolio (the majority is in my tax deferred DC plan, with the remaining percentage in my Roth and taxable holdings). So having said that, my IRA is 100% in Emerging Markets.

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Re: What do you hold in your IRA and Why?

Post by LadyGeek » Sat Jun 29, 2019 8:56 pm

This thread is now in the Investing - Theory, News & General forum (general discussion).

Remember that there are a lot moving parts. Your IRA(s) are one component of the total portfolio.

In addition to the ratio of stocks/bonds (asset allocation) which is decided across the portfolio in its entirety, taxes can influence a decision of what to put into the IRA component.

What's right for one person may not be right for another.
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Re: What do you hold in your IRA and Why?

Post by RadAudit » Sat Jun 29, 2019 9:09 pm

Most of my total portfolio is in an IRA because the only way I could save while employed was through a company 401k plan. I rolled it over when I retired. That part of the portfolio is is essentially dispersed among four index funds that mimic a life strategy fund set-up because I couldn't think of anything better.

Now that I'm retired the excess of RMDs over SWRs is invested in a taxable account in a total stock market fund.
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Lee_WSP
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Re: What do you hold in your IRA and Why?

Post by Lee_WSP » Sat Jun 29, 2019 11:58 pm

SEP - Total Stock & LT bonds
Roth - VIGAX & Total stock

Why? My Roth is fully funded in a lump sum and I figure it's the place to take the most risk since it's the growth that is tax free.

heyyou
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Re: What do you hold in your IRA and Why?

Post by heyyou » Sun Jun 30, 2019 2:50 am

For those who are still working, store your higher growth stock funds in your 401k and IRAs so the growth will not be taxed until much later when you are spending the money. There is an annual limit on IRA contributions, and on 401k tax deferred contributions, but not on the total amount to which either of those accounts can grow. When my 401k contributions were maxed before the end of the year, that particular 401k plan would allow me to continue to add to my account there, but with no tax deferral on the new money.

You are maxing every one of your available retirement accounts now, aren't you? My current accounts are now worth 15 times my one best year's income during those work years. It did take 30 years of compounded growth from when I first started saving, to grow to that amount. The stock market crashes were an advantage when I kept my job, since my contributions to those retirement accounts, bought extra stock shares when those stock prices were so low. It looked like more risk at the time, but there was more reward later.

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grabiner
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Re: What do you hold in your IRA and Why?

Post by grabiner » Sun Jun 30, 2019 10:09 am

heyyou wrote:
Sun Jun 30, 2019 2:50 am
For those who are still working, store your higher growth stock funds in your 401k and IRAs so the growth will not be taxed until much later when you are spending the money.
This is not a clear advantage. If you put stock index funds in your taxable account, most of the gains are not taxed until you sell the funds much later, and they are taxed at the lower rate for long-term gains (or not at all if you leave the stock to your heirs or charity). In return, you have to put bond funds in the 401(k) and IRA, which gives you less growth to tax defer there.

Which one works better depends on your tax rates (which affect the tax cost of your taxable stock investments), and on the yield of the bonds (which affect the value of tax deferral). At current bond yields, it is very close; whether it is better to hold bonds or stocks in your 401(k) should be determined by whether the bond or stock options in the 401(k) are better.

Tax-inefficient stocks, such as REITs or actively managed stock funds, should definitely be held in tax-deferred accounts, because they get a very large benefit from the tax deferral.
Wiki David Grabiner

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goodenyou
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Re: What do you hold in your IRA and Why?

Post by goodenyou » Sun Jun 30, 2019 10:31 am

I have a fee-laiden lousy 401(k). So, I pick the best of the worst choices. I have an index 500 mutual fund with 40 basis points of fees and a stable value fund paying 165 basis points per annum. I have it allocated 80/20 index/stable value to keep my overall portfolio AA where I want it. Several other IRAs in the portfolio are Total Bond Index. The rest of my fixed income is tax exempt intermediate in taxable.
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Re: What do you hold in your IRA and Why?

Post by columbia » Sun Jun 30, 2019 10:37 am

All TIAA Traditional RC in 403b.

I would like to do some tax adjusted tweaking with my overall holdings, but have never bothered to cook up a spreadsheet sheet with the appropriate logic. I looked at the one linked from the Wiki, but it didn’t seem to work (or at least not the way I wanted it to). Maybe because I had imported it into Google Docs? Not sure.

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Spinola
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Re: What do you hold in your IRA and Why?

Post by Spinola » Sun Jun 30, 2019 9:21 pm

Roth IRA holds VTI, TIAA Large Cap Growth Index fund, TIAA Small Cap blend index fund, Emerging Markets Index fund. Reason: aggressive growth.
SEP IRA has TIAA Large Cap growth Index fund, TIAA Small Cap blend index fund, Emerging Markets Index fund and TIAA Real Estate. Growth with some stability.

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Re: What do you hold in your IRA and Why?

Post by honduranhurricane » Sun Jun 30, 2019 10:11 pm

Mine: 50% ITOT (total stock market index, low fee). Rest, individual stocks. All equity (well, ~7% cash, recently sold a position) for growth and to offset my wife preferences (see next).

Wife:75% LSFAX (bank loan fund), 25% ITOT. Wife prefers lower vol than equities and she likes the income she can see being reinvested monthly. I have been able to work on getting more equity exposure, which will grow over the next few years from annual contributions.

Both ROTHS

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Re: What do you hold in your IRA and Why?

Post by Yohanson » Mon Jul 01, 2019 1:40 am

NRZ is the only thing in my Roth. I forgot to add why. Because of the yield.

sschoe2
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Re: What do you hold in your IRA and Why?

Post by sschoe2 » Mon Jul 01, 2019 7:43 am

100% VTI. My 401k is Vanguard Target 2045 and I don't agree with a 40% international allocation.

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