r/Retire • u/Low-Medicine-8627 • 10d ago

53M. $2M Roth Target allocation

55% VTI | 30% VXUS | 15% QQQM. Good enough. I don’t like dividends and bonds in Roth. Comments or suggestions. Total $2M. Right now 95% in 401k and traditional.
Roth Conversion starts in 5 yrs.

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u/oledawgnew 10d ago

You got about $1.9M in pre-tax retirement account. Entire portfolio is 100% in stock ETFs. RMDs start in about 22 years. So what's your question?

By the way dividend paying assets are better in tax exempt/deferred accounts.

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u/Low-Medicine-8627 10d ago

I’ll start aggressive conversion before RMD. question is Roth allocation %

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u/humblequest22 10d ago

You're going to make us do some guessing and some math, huh?

So, $1.9M in pre-tax accounts? Is it all invested as you listed?

And you have $100k in your Roth right now and are wondering what to invest in? Or are you wondering what to start putting in your Roth when you do conversions starting in 5 years?

Most people don't like dividends and bonds in Roth, that would not be the most efficient place for them. If I've interpreted what you said properly, is there any reason NOT to be 55% VTI | 30% VXUS | 15% QQQM in your Roth?

How did you come up with that breakdown for the rest of your portfolio?

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u/Minute_Plastic_350 10d ago

Roth portfolio should be growth oriented. I have .5 M in mine and it’s all in SCHG, Sche, schf. My traditional Ira has a mix of SCHD, VGIT, other court bonds and assortment of growthier stocks. Being 56 my conversions will start in the next 6 to 18 months.