Let's say a friend has stocks in an investment account. Those stocks are earning interest and dividends. Is it advantageous to put the dividends and interest into investments such as stocks inside the SEP IRA?
You'll need to sign in or create an account to connect with an expert.
Your question involves financial planning which is best answered by taking the whole financial situation into account. Generally, bonds are held in retirement accounts and stocks in non retirement accounts but your friend would do well to get advice from a financial planner who takes into consideration their risk tolerance, goals and overall financial situation.
Why would I buy bonds in a SEP-IRA, or anywhere else for that matter? Their growth potential is modest at best.
Most financial planners recommend and portfolio theory shows that an asset allocation containing bonds (the allocation depends upon risk tolerance and time horizon) does better than stocks alone. But, again, this discussion is not the purview for this site. You might want to consider taking to a financial planner or reading about portfolio theory and asset allocation.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
geercom
Level 2
ewoldde
Level 2
thejeepdriver
Level 1
jftaxusa
Returning Member
dugy-fresh
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.