I’m 23 years old and I want to keep my stock investing strategy fairly simple. While simple is my strategy, I’m not using a target date fund because they are too conservative for my liking. Within my Roth IRA, I have already set up recurring payments that will max out my contribution limit by the end of the year. My Roth is a simple three fund portfolio. My desire is to be more aggressive in my contributions, so I’m now structuring a plan to make weekly contributions to a brokerage account as well. Is there a major downside in utilizing the same three fund portfolio containing the same index funds in both my roth and brokerage account?
Hi Dean,
Great job on maxing out your Roth IRA and deciding to save more by adding money to your brokerage account!
I don’t see any major downside in utilizing the same three fund portfolio if you do not plan on selling those three funds anytime soon.
However, I would suggest is looking into using a municipal bond index fund instead of a total bond market index fund - this is especially true when your income increases.
Great job and good luck!
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Is that because municipal bonds are more tax efficient?