Asset Location – The Hidden Gem of Tax Management – Episode 197

There’s a well-known topic in the investing world known as Asset Allocation which is primarily about deciding which asset categories you should own – stocks, bonds, CDs, alternative investments, etc. It’s an important part of building your portfolio.

But there’s another, equally important part that doesn’t get talked about nearly enough: Asset Location. This has to do with how assets located in different types of accounts (Roth, IRA, or personal) are ultimately taxed to you. When done properly, an asset location strategy may dramatically decrease the amount you’ll ultimately pay in taxes on those assets.

How does it work, and why is the distinction so important? Podcast host Johnny Dean welcomes his guest, Rick “The Professor” Plum, CFP® on this week’s episode of Managing Your Financial Future to tell you all about it!

Asset allocation does not ensure a profit or protect against a loss.