How do you split your Roth & 401k investments?
A newbie to 401k & roth: since last 2 years i am putting 100% of my 401k in WFSPX (S&P 500 Index fund) Starting with Roth in 2021, how shall I split it? - 4k Fidelity Bluechip or TipRanks highest upside stocks - 1k Fundrise - 1k altoIRA (Crypto) please advice.#personalfinance #investments #401k #rothIRA tc: 130k
Leave 401k to the default comfort zone fund. Use roth to gamble tax free
Equal distribution of assets for each group: pre-tax, roth, and taxable. You gain nothing from changing asset location. Plus it is harder to rebalance (how do you compare pre tax and post tax money?) The only thing that's worth considering imo is keeping dividends in a tax free or tax deferred account
I disagree about the above comment on asset location. Itโs a big factor of a successful investing strategy. Take a look at the asset location section at https://engineerseekingfire.com/8-critical-decisions-for-a-successful-investing-strategy/
Thanks for the link. I took a look and it seems that it is mostly about location between taxable accounts and the tax deferred/tax free.
My guy, you work at TD, surely they have guidance they could provide you. They have some great public edu resources on YT.