I hope these questions are not too simple to be asked!
I have a Roth IRA and a regular brokerage account w/ Vanguard. I normally contribute the max to the Roth IRA account, and made the regular account a few years to invest more of my income since the IRAs have a limit.
I recently saw someone actively trade stocks using their IRA account, so I did some reading and searching, and it seems the suggestion is to have long term investment in regular accounts (e.g stable ETFs: VTI, etc), and have more volatile investments in the Roth account, e.g (ARKs, individual stocks, etc).
The reasoning for long term investments in the regular taxable account is because you won't be cashing in anytime soon, so it's better there. Whereas with individual stocks, volatile ETFs, you're more likely to buy/sell, so it's better if they're in the IRA accounts.
Let's say my portfolio are as following hypothetically:
-
VTI
-
ARKG
-
ICLN
-
DKNG
-
PLTR and so on...
Should I move my assets around so the taxable brokerage account has:
-
VTI
-
ICLN
Whereas the IRA account would have the remaining that I'm more likely to buy/sell often? The downside to actively trading in the IRA account is the contributions cannot be recovered if loss, e.g I lose 500 of the 6000, I cannot put 500 back in for that year.
Or am I just over complicating things? Thanks!
Submitted February 14, 2021 at 06:10PM by theirregularbam https://ift.tt/2Zh3raG
