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Non-deductible IRA: Don't do it. Any money that comes out of it will be taxed as income -- and your income taxes are not going to get lower.

It might be a good place for something that is tax-inefficient, like the Vanguard REIT Index Fund.

But for broadly-based stock index funds, it probably isn't.

I think I would prefer holding something like the Vanguard Total Stock Market Fund or the Vanguard Tax-Managed International Fund in taxable account than hold it in non-deductible Traditional IRA.

I have Vanguard Tax-Managed International (stock) Fund and Vanguard Total Stock Market Fund in taxable, Vanguard REIT Index Fund in Roth, and Vanguard Bond Market in both taxable and Roth, but then, thanks to my 403(b) contributions plus itemized deductions, I am in the 15% federal marginal tax bracket. If I were in a higher tax bracket, I'd look at a state-specific municipal bond fund or a non-state-specific municipal bond fund for my bond allocation in a taxable account to see if the after-tax yields are better than after-tax yields of the Total Bond Market.
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