Personal Investments • Rebalancing Roths without bonds

I will be retiring in 7 years and am simplifying my portfolio into a simple mix:

36% - Total US Equities Index
20% - International Equities Index
4% - REIT Index
40% - Short-Term Treasuries Index (converting some if this into individual securities - including some TIPS - along the way)

My wife and I have several different types of accounts - a SEP, a 457, a 403b, 2 small Roths, and a very small traditional IRA. Considering rebalancing convenience only, ideally each of these accounts would hold the same funds in the same proportions. However, it would seem a little redundant to have short-term treasuries in the Roths. I could just leave the securities out of the Roths and make up for the difference in the tax-deferred accounts, but it seems I would have no rebalancing room if that were the case. Is it better practice to 1) leave the treasuries in the Roths and not worry about the wasted tax benefits, 2) do not include treasuries in the Roths and not worry about the rebalancing issues, or 3) replace the treasuries with something else, maybe a Total Bond Index?

Thanks.

Statistics: Posted by PaulWilliams — Sat Jun 22, 2024 4:48 pm — Replies 3 — Views 261

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