Tax-Efficient 'Bucket' Retirement Portfolios for Fidelity Investors
Featuring solid muni funds and index equity offerings, these portfolios are appropriate for investors' taxable accounts.
Editor's Note: These portfolios were updated on June 10, 2019.
My initial Fidelity bucket portfolios--conservative, moderate, and aggressive--were geared toward investors in tax-deferred accounts like IRAs. With healthy allocations to bonds, including stakes in tax-unfriendly categories like TIPS and commodities, these portfolios are not going to be particularly tax-efficient over time. Therefore, they are a better fit for accounts where investors are not paying taxes on their regular distributions.
Christine Benz does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.