56 yo - recently laid off - trying to figure out the best stock/bond allocation across two 401K's and one taxable account. I've read that yield producing bonds are better held in 401K accounts. But i've also read that equities - if you don't need the money short term - should be held in 401K accounts. In my case, i'd feel better having some bond income I can rely on.
So lets say my target stock/bond allocation is 67/33, and I have 3MM equally distributed across 2 401K's and 1 taxable account. Which is the better allocation...
OPTION 1: 401K (A) = 100% equities | 401K (B) = 100% equities | TAXABLE = 100% fixed income
OPTION 2: 401K (A) = 67/33 | 401K (B) = 67/33 | TAXABLE = 67/33
I like option 2 because it's much easier to rebalance (as each account is compartmentalized). I don't like option 2 because bond yield is less, and it's less tax efficient.
I like option 1 for the income.
Your thoughts are appreciated, thanks!
Submitted August 27, 2023 at 03:02AM by RareMix https://ift.tt/wZakyA4
