basic IRA allocation question

[arsoisaen]

right now im maxing out my rothIRA and also adding to a taxable account (no 401k yet) with a world stock, VHGEX, 100% equity for all my investments basically.

I want to add in a bond fund to my investments to lower my market risk i guess, however should i put this in my IRA?

I understand that from a tax standpoint bonds incur much more tax, and that it should be put in a tax deferred account (or in my case the Roth IRA). However, if i'm assuming the return on my world stock is much higher then the bond fund, would it be smarter to leave bond in a taxable account and equity in my IRA?

I figure the main arguement for bonds in the IRA is that I cant assume my equity will increase at the rate its going and fundamentally i should leave my bond fund in nontaxable accounts. Is there anyway of calculating which is better? Or does anyone have any general pointers? thanks

[SleeperHE]

You can assume for the VHGEX that some of the return will remain unrealized for a great period of time, so a greater return doesn't necessarily mean that you will have a realize a greater tax expense for the year. In addition long term capital gains and equity dividends are tax at a lower rate. Bond Fund income on the other hand is taxed at your current income tax rate, if I'm not mistaken. So if the only reason you are purchasing the bond fund is to reduce your risk, I would purchase the bond fund in your IRA.