Thank you - indeed the 26.3% was a typo. It's supposed to have said 12.43%.This line doesn't make sense: 6.2% US + 7.7% Int'l + 26.3% Bonds does not add up to 26.4% of total portfolio for just the 401k. Fix that and we can probably answer your question.401k Account = 26.4% of total portfolio with 6.2% US Stock, 7.7% Int'l Stock and 26.3% Bonds
If, for example, that said 12.5% Bonds instead of 26.3%, then it would add up and your current & proposed AA would look like the image below. All the rebalancing is done in the Trad IRA (make it 100% bonds) and the 401k, so there's no tax consequence.
Holding nominal bonds in a Taxable money market account (MMA) isn't tax-efficient (highlighted in purple), so I suggested swapping that to a tax-exempt bond fund. If that's a tax-deferred MMA or your Fed marginal bracket is < 22%, then maybe you don't need to worry about tax-efficiency that much (so no need to swap nominal bonds for tax-exempt ones). Ideally, per Tax-Efficient Fund Placement, you'd put all your bonds in the Trad IRA & 401k, and redeploy the 2.8% bonds in Taxable into US and/or Int'l stock. Also "US & Int'l Stock" is a pretty generic label, but you do not want to hold the same (or substantially identical in IRS lingo) funds in Taxable as you're holding in any other accounts, in order to completely avoid any Wash Sales issues that could complicate tax filing if you ever sell stocks at a loss in Taxable but then inadvertently repurchase the same/similar stock in another account that "washes away" the loss so it can't be fully claimed on your tax return. Using Vanguard ETFs that would be solved by holding VTI & VEA in Taxable, but then VOO & VXUS in all other accounts (for US & Int'l respectively).
Using Goal-Seek to zero the deltas...
Regarding the "bonds" in the MMA, it's not a bond fund it's just cash but I count it toward my bond allocation.
Thanks all for the review and tips, I went ahead and made the exchange to rebalance!
Statistics: Posted by JI0124 — Fri Oct 03, 2025 4:54 pm — Replies 6 — Views 838