Hi all,
I've been reading the Intelligent Investor by Graham and I've recently opened my eyes to small exposure to bond investing.
I know rate hikes have increased recently which means long-term maturity bonds might not be the best bet, but for the sake of diversity, I'm considering investing in some bond etfs.
Currently my account is as follows.
- 150,000 in SPY in individual brokerage account
- 20,000 in bank account ready to invest, with 6500 ready to put in ROTH IRA and 13500 to add on to my individual brokerage account.
So here is my question:
- Given that Bond etf dividends are tax qualified, would it be better to invest in bond etfs in my ROTH IRA so I don't pay taxes on dividends? Then I can put the remaining amount of money in my non-tax advantaged account and keep buying SPY
- Would it be better to just buy SPY & SCHD on my ROTH IRA, and rather have my small exposure of bonds to my non-tax advantaged account?
Any help is deeply appreciated?
Leave a Reply