Which Assets in Roth IRA?

General Discussion on the Permanent Portfolio Strategy

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barrett
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Re: Which Assets in Roth IRA?

Post by barrett » Sun Aug 12, 2018 8:34 am

Welcome to the board, Hal.

For cash in my Fidelity tIRA account I have just been managing a one-year, four-rung T-Bill ladder. For anything less than a year, T-Bills are paying more than CDs. It's only for periods longer than a year that CDs currently have a slight edge.

I've also used both SHY and SCHO for smaller positions (for example, solo 401(k) at TDA) just because it's easier to not have to deal in chunks of $1,000 as one must do with T-Bills. But I just checked both funds again and I see that SCHO's ER is only .06%. SHY is still at .15%. Otherwise they look to be almost identical in terms of holding treasuries, having similar average duration, etc.

Where one holds what assets and in what percentages probably depends on a lot of factors. I recently retired and have a big cash position in my taxable accounts as I'll be drawing from that for a few years while trying to do tIRA to Roth conversions. And I hold no long bonds in taxable as I have to fold in a big batch of EE and I-Bonds. In other words, I have enough deflation protection in that quadrant and don't want to go too low on either gold or stocks.

I think most posters on here (and there are precious few of them at the moment) have pretty much reached the conclusion that as long as one has some protection in all economic environments, the exact percentages are not sacred. With that being said, a 33% cash stake in a Roth sounds a bit high... at least to me.
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Tyler
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Re: Which Assets in Roth IRA?

Post by Tyler » Sun Aug 12, 2018 10:09 am

ochotona wrote:
Thu Jul 19, 2018 4:59 am
Oh yeah any IRA is good for gold because you avoid the Collectibles Tax.
I've always thought "collectibles tax" is a misnomer, as it implies a separate tax on top of what you'd normally owe. However, gains from gold are taxed as ordinary income at whatever tax bracket you fall in but with preferential treatment that the tax is capped at 28%. You also have control over when and how much you need to sell. Compare that to bond interest that is also taxed as ordinary income but with no such cap and no choice but to pay it every year.

In any case, I've personally come to the conclusion that the simplicity, predictability, and flexibility of just having separate complete portfolios in each account more than makes up for any theoretical tax savings from over-thinking where to store every last penny. But obviously YMMV.
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boglerdude
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Re: Which Assets in Roth IRA?

Post by boglerdude » Mon Aug 13, 2018 12:16 am

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Desert
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Re: Which Assets in Roth IRA?

Post by Desert » Mon Aug 13, 2018 5:57 am

boglerdude wrote:
Mon Aug 13, 2018 12:16 am
Achieva 4% 5 year IRA CD

https://www.bogleheads.org/forum/viewto ... ?p=4063141
And 4.2% for $75,000+
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ochotona
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Re: Which Assets in Roth IRA?

Post by ochotona » Mon Aug 13, 2018 7:28 am

Desert wrote:
Mon Aug 13, 2018 5:57 am
boglerdude wrote:
Mon Aug 13, 2018 12:16 am
Achieva 4% 5 year IRA CD

https://www.bogleheads.org/forum/viewto ... ?p=4063141
And 4.2% for $75,000+
If we get a 5% CD, I'm selling all of my stocks.
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pugchief
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Re: Which Assets in Roth IRA?

Post by pugchief » Mon Aug 13, 2018 12:03 pm

ochotona wrote:
Mon Aug 13, 2018 7:28 am
Desert wrote:
Mon Aug 13, 2018 5:57 am
boglerdude wrote:
Mon Aug 13, 2018 12:16 am
Achieva 4% 5 year IRA CD

https://www.bogleheads.org/forum/viewto ... ?p=4063141
And 4.2% for $75,000+
If we get a 5% CD, I'm selling all of my stocks.
Liar!
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ochotona
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Re: Which Assets in Roth IRA?

Post by ochotona » Mon Aug 13, 2018 12:25 pm

I bought an 11% ? CD from Imperial Savings and Loan in California back in the day.
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pugchief
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Re: Which Assets in Roth IRA?

Post by pugchief » Mon Aug 13, 2018 12:43 pm

ochotona wrote:
Mon Aug 13, 2018 12:25 pm
I bought an 11% ? CD from Imperial Savings and Loan in California back in the day.
11 is not 5.

And regardless, without the other PP parts, you will be losing to inflation no matter what CDs are paying.
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