I'm aware of tax-efficient asset allocation and the debates surrounding it. Hence Muni's in taxable as the fixed income portion which I've done for over a decade. Obviously TIPS are tax inefficient and it would be a bad idea to have them anywhere but tax-deferred/tax-free.
With tax efficient placement the devil is in the details which led to my post.
A not infrequent theme here seems to be regret about past management of tax-deferred which leads to large RMD's once retired and the subsequent tax hit. I will have a sizable taxable account and social security that will provide a floor. I'd like to hit the brakes on growth in my tax deferred space (with TIPS ladder) and Roth convert a large portion prior to required RMD's as I expect a sizeable tax bracket drop in retirement.
The simplified question is: Does the trade-off of Muni protection against cap gains offset my perceived benefit outlined above?
It's a personal decision but wondering what others would do/have done.
With tax efficient placement the devil is in the details which led to my post.
A not infrequent theme here seems to be regret about past management of tax-deferred which leads to large RMD's once retired and the subsequent tax hit. I will have a sizable taxable account and social security that will provide a floor. I'd like to hit the brakes on growth in my tax deferred space (with TIPS ladder) and Roth convert a large portion prior to required RMD's as I expect a sizeable tax bracket drop in retirement.
The simplified question is: Does the trade-off of Muni protection against cap gains offset my perceived benefit outlined above?
It's a personal decision but wondering what others would do/have done.
Statistics: Posted by PigBodine — Fri Apr 05, 2024 12:13 am — Replies 2 — Views 218