Is it ok to put bonds in a brokerage?

#1

Hello!
I read some comments that bonds weren’t ideal for brokerage, and belong in tax advantage accounts.

Reading below it looks like Series 1 and Municipal Bonds are ‘safe’ for brokerage accounts. Does anyone know what kind of bonds are in TDIF?

I read one suggestion to manually create 3 fund portfolio and put your bond allocation in tax advantage IRA account to shield from tax impacts :slight_smile:

Do you think tax impacts for bonds in a brokerage is substantial enough to worry about? or not a big deal?

I looked at my employers 401K 2055 TDIF, it’s made up of 87% stocks, 13% “complimentary assets”. It doesn’t have bonds in it yet… it’s 5% real estate and 8% Risk Parity. looks like bonds will show up in early 40s based on the nifty fact chart.
I maxed my Roth out this year with Fidelity 2060 TDIF, so right now those are the only bonds I own.

Thanks!

#2

Hi AriMoon,

Great question and I love the diligence :slight_smile: Jeremy answered a similar question about tax efficient fund placement here! (Basically he says it’s not a big deal.) Target date fund in a taxable brokerage account? - #2 by Jeremy

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