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Old 05-04-2007, 06:16 PM
arsoisaen arsoisaen is offline
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Join Date: Sep 2005
Location: Berkeley
Posts: 304
Default basic IRA allocation question

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
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