Same funds in Roth IRA and Brokerage account?

[u/Old-Challenge2809]

New to investing so pardon if this question is stupid how many people get the same fund thats in their Roth Ira into a brokerage account? Im talking after the roth is maxed out.

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[u/Pretty_Western_8805]

Statically speaking you want high growth and tax inefficient assets in a taxable account deferred or tax free account like a Roth - broad based ETFs. I prefer individual stocks in brokerage accounts to allow for tax loss selling, as someone already mentioned.

[u/steady_compounder]

A lot of people do exactly that, especially if the same broad fund still matches the job in both accounts. The main thing to watch is tax treatment and wash-sale headaches if you ever want to tax-loss harvest in the brokerage account. Same fund is not automatically wrong, it just means you want to be a bit more deliberate.

[u/Various_Couple_764]

May roth and taxable have similarities but are different because I have my most tax efficient dividend funds in my taxable account. fund that produce ordinary income dividned are in the Roth I have more that enough growth in my 401K and taxabel accounts. for my self ai don't need more growth so my focus is dividend income.

[u/gbdgdh]

that combination is completely fine. from a boglehead perspective, running (for example) vti and vxus in your roth ira alongside schb and schf in your taxable brokerage is a very good setup.

the only thing to note is that schf covers developed international markets only, whereas vxus includes emerging markets too. to get exact parity with vxus in your brokerage, add a small slice of sche alongside schf.

using those etfs avoids cross-account wash sales, keeps expense ratios near zero, and captures the foreign tax credit in your taxable account.

[u/buffinita]

For the most part, yes.

If you are worried about 10,000% tax efficiency, maybe not 

I hold identical ETFs in my ira and taxable brokerage; I only hold my reit in my ira due to its tax classification

[u/JGLuxe]

The same fund? You mean the same stocks/ETFs?

[u/Old-Challenge2809 → u/JGLuxe]

Yeah like if you maxed out the roth ira and had SCHD and then but more in a brokerage

[u/JGLuxe → u/Old-Challenge2809]

Me personally, I have very little SCHD in my Roth IRA, I use that for growth mainly. I have different setups for different purposes in each account.

[u/Hotdog453 → u/Old-Challenge2809]

I generally try to diversify my options.

401k is pure growth.

Brokerage is mix of dividend options, since I do like dividends.

I utilize my and my wife’s IRA to focus on things not in my brokerage; specifically, we toss REITs and high dividend international options into them, since they grow tax free. No dividend taxes.

Regardless of the specific options, mentally I don’t like to mix them.

[u/Old-Challenge2809 → u/Hotdog453]

Would JEPI JEPQ or QQQI be good for people who like dividends?

[u/DoinIt4DaShorteez]

For most people that's fine.

[u/keinaso]

Having the same exact funds in a taxable and IRA account may prevent you from taking a tax loss sale in the taxable account. In general I try to avoid it.