If your investment plan includes taxable bonds (Treasuries, corporate issues, mortgage-backed securities), they should be held inside a tax-deferred retirement account such as an IRA or a 401(k). Suppose, for example, you have $100,000 in an IRA and $100,000 in a taxable account. Assume your asset allocation is divided 50-50, between stocks and taxable bonds.
You should hold the bonds inside your IRA, where the tax on the interest income will be deferred. You won
