Hello,
Sorry if this has been asked before. But If I have a Roth IRA and I am investing in a target date index fund.
Is it advisable or smart to then invest in the same fund after I hit the max IRA amount in just a normal brokerage account?
Example after 6k in Roth IRA in FDKLX, use that same fund as spill over in the regular account? Thanks!
In my opinion, yes, that makes perfect sense. It’s simple, low fee, auto-rebalancing and auto-reallocating. It’s a strategy I personally use!
An academic might point out that there is such thing as tax-efficient fund placement. By breaking up that target date fund into its component parts (US index fund, international index fund, bond fund) you could place each in the type of account that makes most sense to optimize tax efficiency.
That sounds fancy, but it basically requires foreknowledge of which ones will go up in value more and which ones will generate more taxable dividends, etc. When I’ve put the most extreme case possible into spreadsheets, it really doesn’t make much difference, especially if the numbers aren’t gigantic and especially if the accounts are disproportionately sized. (i.e. 95% IRA or 95% brokerage account, it doesn’t really matter).
So, as a fan of simplicity, I’m like sticking the same TDIF in every account and sleeping like a baby.
What if you want to put more in international index funds? For example if the international index funds outperform the us index funds and we can’t really change the ratios… What do you think of this hypothetical scenario?
TIA!
Thanks for the explanation. I needed to hear this. 
Hello,
That’s exactly what I’m doing, My only doubt was if it’s good to put the eggs in the same nest! I was thinking in maybe use another similar fund but i believe that at the end of the day all Index funds follows the same, Do i’m right?