Do you have a Roth IRA account? Have you thought about what advantages you get from investing in a Roth account as opposed to a taxable account? It’s worth a few minutes of time to consider your options.
Your asset allocation demonstrates your investment strategy including your risk tolerance, goals, investment time frame, etc. How does a pie chart demonstrate all these factors? It provides clues according to current agreed upon rules of personal financial investment.
There are many reasons why people choose to invest in a taxable account. I named two big reasons in my previous post. Here are five more in case you needed a little more convincing.
If you have money left after 401k and IRA contributions, what’s the next best place to invest it? Come follow my posts on how to manage your personal finances. It’s worth a few minutes of your day.
There are problems with simply selling your excess asset types. You may not want to sell an asset held in a taxable account because selling it can trigger a taxable event, which is usually undesirable. Here are the 3 steps I usually take to rebalance my portfolio.
Rebalancing is an integral part of your asset allocation management. Because assets within your portfolio grow at a different rate, the portfolio as a whole needs to be rebalanced periodically to maintain its risk exposure and its growth potential.