So while were on the subject of diversification between accounts….

Do the rest of you adjust (based on expected tax rate) for whether or not the holdings are in a tax deferred account, or a tax free account?

Just as an example, if one has 10k in domestic stocks in a traditional IRA, and 10k in foreign stocks in a ROTH IRA… The effective allocation is not really 50% domestic / 50% foreign. In my mind, the only dollars that matter are the after tax dollars that go in my pocket. So if the expected tax rate during retirement is 25%, the allocation is really 43% domestic / 57 % foreign.

I use a spreadsheet to break my funds down into about 10 asset classes, then sum each of the asset classes and calculate percentages. I've considered adding in a multiplier to the spreadsheet to adjust everything into after tax dollars.

-Joe