All four of these are in my trad IRA. Yes the consensus here is that my existing practice of using the VTSAX for RMDs is best. Since the RMDs go into the same fund in the taxable account ( and I never withdraw any of it) , there is no change in overall allocation. Of course in the IRA it may be heavier in bond funds due to these withdrawals ( offset by the fact that the stocks have more growth).Stock index funds llke Vanguard Total Stock Market Index Fund are very tax-efficient, and are suitable for any type of account including a taxable brokerage account. Bond funds are not very tax-efficient and should ordinarily be held in a tax-advantaged account, preferably a traditional tax-deferred account.
Do you hold both stock and bond funds in your traditional IRA? Whichever fund you sell in the IRA to fund your Required Minimum Distributions (RMDs) rebalance back to your desired asset allocation by exchanging between funds inside your IRA.
VBTLX VANGUARD TOTAL BOND MARKET INDEX
VTABX VANGUARD TOTAL INTL BOND INDEX
VTIAX VANGUARD TOTAL INTL STOCK INDEX
VTSAX VANGUARD TOTAL STOCK MARKET INDEX
Statistics: Posted by Indianrock — Thu Sep 12, 2024 10:21 am