One-half of retirement savings

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You can tax shelter only one-half of your retirement savings. You want to invest one-half of your savings in bonds and one-half in stocks. How much of the bonds and how much of the stocks should you allocate to the tax sheltered investment?

a) Stock and bond investments should be equally invested in both tax sheltered and non-sheltered accounts.

b) You should place all the stocks in tax sheltered accounts and all the bonds in non-sheltered accounts.

c) You should place all the bonds in tax sheltered accounts, and all the stocks in non-sheltered accounts.

d) It makes no difference how you allocate your stock and bond investments among tax sheltered and non-sheltered accounts.

Reference no: EM13146287

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