Originally Posted by
notEnuf
In all diversified portfolios there is a place for low beta assets. MBCBP is that low beta asset. The amount of that asset is still up to you based on 401k and other funding choices. Your risk tolerance in the other vehicles can increase because of the MBCBP. You will never need to own bonds or expensive dividend producers again.
While most everyone will agree with allocating some capital to a low beta position, one of the reasons for that position is preservation of "dry powder" for capturing opportunity in a down market. The MBCBP falls short in that regard. MBCBP is taxed as income when withdrawn, this is a much higher rate than qualified dividends and partially negates the tax savings.
A re-read of Negotiators Notepad 22-01 would reduce the entertainment value found in this thread. It addresses a couple of the biggest fears. The one piece I couldn't discern was if MBCBP would be taken from self-induced 401k excess or just from 401k excess resulting from company contributions. If it is the former the MBD Roth gets Nerfed, the latter it isn't nearly as bad. One interesting note that should allay some concerns is the option for in service withdrawals once reaching 59 1/2.