Not all dividends and gains are taxed! In your non-taxable accounts, any dividend or capital gain (short or long term) are not taxed, these monies are only taxed when you take an RMD or decide to sell after 59.5 years old. Any dividends or gains in your Taxable accounts are taxed.
I don’t touch my non-taxable accounts so all gains and dividends are reinvested. Since we can live off our taxable accounts and SS, I don’t reinvest any gains and dividends.
As for investment allocation, I never bought bonds, they don’t make you any $$$ and I would rather make $$$ when the market is going good. When I’m fully invested, it’s 95% Indexed funds and apple. Now with all of the turmoil in the country, I sold all of my non-taxable holding when they were at their highest 1.5 years ago. I have most of these $$$$ invested in money market funds getting 4.85%. I have purchased decent size allocations in my non-taxable accounts of technology indexed funds and energy this year to take advantage of some of this tech craze over AI.
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