In this episode, Alex and Wade discuss the importance of asset location in addition to asset allocation. They explain that asset location involves strategically placing assets in different types of accounts based on their tax efficiency. They discuss the tax efficiency spectrum, with tax-exempt bonds being the most tax efficient and REITs being the least tax efficient. They also discuss the tax advantages of different types of accounts, such as Roth IRAs, 529 plans, health savings accounts, and non-qualified annuities. Listen now to learn more!
Takeaways
Chapters
00:00 Introduction to Tax Efficiency
05:49 Understanding Asset Allocation and Tax Efficiency
09:39 Exploring the Tax Efficiency Spectrum
18:45 Placing Assets in Taxable, Tax-Deferred, and Tax-Exempt Accounts
27:30 The Importance of Asset Allocation in Tax Location Decisions
33:58 Other Considerations: Annuities, Life Insurance, and More
Links
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This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips
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