From a financial standpoint with the prior poster, however I’ve found there to be numerous practical advantages to having them in my taxable as munis:
1. Double as an emergency fund
2. Liquidity useful in real estate purchases
3. Psychological- Nothing helps you navigate uncertainty like having a fat wade of liquidity you can call upon when needed — with minimal tax consequences. Most people don’t look at their retirement accounts as much either, so helps soften the blows of market corrections (overall portfolio might be 70/30 but the taxable you look at everyday might be 40/60).
4. Once they are in tax sheltered accounts, it’s very difficult to rebalance them out without triggering capital gains taxes on your equities.
You can also consider something in the middle like a 50/50 split or 25/75 between taxable and tax sheltered.
1. Double as an emergency fund
2. Liquidity useful in real estate purchases
3. Psychological- Nothing helps you navigate uncertainty like having a fat wade of liquidity you can call upon when needed — with minimal tax consequences. Most people don’t look at their retirement accounts as much either, so helps soften the blows of market corrections (overall portfolio might be 70/30 but the taxable you look at everyday might be 40/60).
4. Once they are in tax sheltered accounts, it’s very difficult to rebalance them out without triggering capital gains taxes on your equities.
You can also consider something in the middle like a 50/50 split or 25/75 between taxable and tax sheltered.
Statistics: Posted by mrspock — Thu Mar 28, 2024 10:40 pm — Replies 4 — Views 257