It is all proportional. $1000 becoming $900 is a 10% drop in NAV of investment in FXNAX. Same $1000 in CD or T bill in taxable right now yielding 4.5% ir $45, but as recently as March this year were yielding 5%, so that is $50.There's no point in making guesses as to how much interest the OP might earn in a taxable account since we have no idea how big the portfolio is, or how much of the portfolio is in the Roth account. For all we know, there could be $50 in FXNAX or it could be $250,000...
Right! You would rather watch your fixed income investment of $1000 become $900 in a Roth IRA, but be afraid to pay taxes on $50 growth in a taxable account through the use of CDs / T-bills.
Regards,
Scale everything in that previous paragraph by 200 if we want to discuss $200k in fixed income.
Statistics: Posted by lakpr — Fri Dec 13, 2024 10:51 am
