Tweet
As noted in other threads, I plan to set up a taxable IRA this year and next year for my wife and then rollover the 10,000 in there into a Roth IRA for her. My 401k rollover IRA has about 27,000 in it. I am thinking of investing both of these totally in one of the Vanguard international funds. My idea is that this would be the highest risk/reward part of our portfolio and would need that tax shelter. Wife also has a $230k 401k contributing 16,500 plus employer match portion (if I had been running it instead of fidelity it would be over $1 million with those kind of contributions for the past 12 years).
The rest of our investments, other than for some silly reason paying an extra $700/month on a 5.125% home loan are spread out at about 50% stocks and stock indexes, 30% municipal bonds (Vanguard fund) and 20% cash.
Anything in particular you would do differently? I am considering going more toward a 50/50 split of stock and muni fund since we are in such a high tax bracket. There certainly is something nice about paying 0 taxes on the muni interest, even if it is only 4%/year. Pretty low risk too.
The rest of our investments, other than for some silly reason paying an extra $700/month on a 5.125% home loan are spread out at about 50% stocks and stock indexes, 30% municipal bonds (Vanguard fund) and 20% cash.
Anything in particular you would do differently? I am considering going more toward a 50/50 split of stock and muni fund since we are in such a high tax bracket. There certainly is something nice about paying 0 taxes on the muni interest, even if it is only 4%/year. Pretty low risk too.
Comment