Hello,
I am hoping someone can help me clear up my confusion on asset location. I live in California and make about 200k a year. I only have a 401k available to me at work which I max out each year.
So, from the research I have done I should place tax efficient ETF’s & cash in the brokerage account, higher growth in the HSA & Roth, and income producing in the Traditional IRA.
My initial thought is to not have bonds (I may change my mind) and instead invest in SCHD and /or VIG since they are dividend ETF’s and I plan to place it in the Traditional IRA.
VNQ Vanguards REIT would also go in the Traditional IRA. Depending on my needs in the future I may add VTEB Tax Exempt Muni ETF and since it's tax advantaged that would go into the taxable brokerage, right?
The other Vanguard ETF's I like are VTI Total Stock Market, VB Small Cap
I listed the accounts below that I have in the order of largest dollar value to the smallest. The 401k is at the end because I just started a new job and will be eligible to start depositing money into that 401k on June 1st. I will put the asset location that I believe is correct below and if I am wrong or if you have a different opinion please let me know. VTI happens to be tax efficient and it is also growth, right? So that is why I placed it in multiple buckets.
Taxable Brokerage
VTI Total Stock Market ETF (Tax Efficient/Growth)
VXUS Vanguard Total International Stock ETF (Tax Efficient/Growth)
VTEC Vanguard California Tax Exempt Bond ETF (Tax Efficient)
VTEB Tax Exempt Muni Bond ETF (Tax Efficient) ***I May Remove This One
Roth IRA
VTI Total Stock Market ETF (Tax Efficient/Growth)
VXUS Vanguard Total International Stock ETF (Tax Efficient/Growth)
VB Small Cap ETF (Tax Efficient/Growth)
Traditional IRA
VIG Vanguard Dividend Appreciation ETF (Income Producing)
VNQ Vanguard REIT (Income Producing)
SCHD Scwab US Dividend Equity ETF (Income Producing) ***I May Remove This One
HSA
VTI Total Stock Market ETF (Tax Efficient/Growth)
VXUS Vanguard Total International Stock ETF (Tax Efficient/Growth)
VB Small Cap ETF (Tax Efficient/Growth)
401k
I will have to see what is available from my new employers 401k plan.
I may remove the VTEB Tax Exempt Muni Bond ETF because although it is federally tax free I live in California and will have to deal with the state tax consequences. I may just stick to VTEC Vanguard California Tax Exempt Bond ETF.
Again, please share anything you would change or correct my assertions as I am new to this and would like to learn.
Thanks.