Cashless in tax-advantaged?

[Xan]

In a hypothetical world where somebody keeps separate PPs in each tax treatment (taxable, tax-deferred, and tax-prepaid Roth-style), and does not plan to touch the money in the retirement accounts for decades, is there any disadvantage to going to 3x33% and leaving out cash in those retirement accounts?

If I'm doing the math right, the rebalancing bands would be 23% and 43% as the equivalent of the normal 15%/35%.

Anyone have experience with this?

[ochotona]

I generally don't see the point of separate PPs in different kinds of accounts. What is the justification for this type of strategy in your case?

[Xan]

At the moment, it's primarily because of different time horizons for when I might use the money.

[ochotona]

No-cash levers the results of any portfolio; sounds fine to me to do it in a retirement account.

[Tyler]

At current rates I wouldn't fault anyone from paring back on cash in a retirement account.  But if you look at history it's not something you want to leave out.  Paying the historical average of 4-6%, you'd wish you had some in your tax-deferred account.

[img width=300]http://mortgage-x.com/general/indexes/c ... bill_6.gif[/img]