Gyroscopic Investing

mathjak107 wrote: the best results when investing long term  are generally going to be  from keeping equities in the deferred accounts and bonds and cash in the taxable accounts.

This is interesting, I was thinking along the same lines, although I thought the order should be bonds first, then stocks, then cash, because the interest on bonds is higher than the dividends on stocks usually, no?

no , the total return on stocks easily eclipses the returns on bonds usually . as little as 1% in dividends in the taxable account or a fair amount of turnover in a fund generating distributions wipes out any tax savings from lower capital gains rates .

equity's grow better when everything is deferred and taking up the space in a deferred account with cash at 1$% and bonds under 3% does not work out as well .

if you are anything but in the 15% bracket and cn benefit from zero capital gains then the deferred account are where you want equity's .

Interesting twist on the usual advice on stocks in taxable bonds in tax deferred, in general.

This is an interesting article on AA as well
http://beta.morningstar.com/articles/73 ... s-of-.html

craigr wrote:
After tax returns for 10 years:

VTCLX: 8.14%
VTSMX: 8.08%

I think the deciding factor comes down to what tax bracket, VTSMX being generally considered superior except for the top tax brackets, I forget the cross over point.