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Werewolfdad t1_jed82oe wrote

Reply to comment by ToothPicker2 in Pre-tax assets messing up my asset allocation percentages.. pls help! by ToothPicker2

Read the tax efficient asset allocation at the bottom of the following link

Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics

> So my actual asset allocation is $54:$40 or 57:43.

And this is wrong. It’s not. A traditional account doesn’t get a discount.

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ToothPicker2 OP t1_jed8oc7 wrote

I’m aware about tax efficient asset allocation, where bonds must go into tax advantaged accounts rather than a brokerage, etc etc.. that’s not what I’m asking.

A traditional IRA is pre tax dollars, right? So when we calculate the total ratio, all the assets must be considered post-tax right? So how’s it wrong?

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Werewolfdad t1_jedaen4 wrote

> A traditional IRA is pre tax dollars, right? So when we calculate the total ratio, all the assets must be considered post-tax right? So how’s it wrong?

Because it’s not a consideration because he can withdraw it all and have a large tax liability or withdraw none of it and have no tax liability.

Plus he doesn’t have enough money to put this much effort into a few percentage points of assets or way or the other

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