How should you use asset location in your portfolio?
What is asset location?
- The goal of investing should be to provide the highest after-tax returns across the entire portfolio. It begins by placing the assets where they will be the most tax-efficient.
- By looking at the anticipated returns from each investment type, and then looking at the way they incur the least amount of taxes.
- This means you keep more of the portfolio’s returns, without changing the overall investments.