Asset location

Asset location

Asset location is a term used in personal finance to refer to how investor distribute their investments across taxable and non-taxable accounts (e.g., 401(k) or IRAs). In order to maximize performance of a financial portfolio, it is often advised that an investor place income-generating investments (e.g. bonds) into tax-deferred or non-taxable accounts and place equity investments (e.g. index funds) into taxable accounts.

ee also

Asset allocation


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