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Place Assets By Tax Efficiency
- Put your most tax-efficient investments in taxable accounts and bonds in tax-protected accounts when sensible.
- Rebalance only in protected accounts and build the rest of your allocation around employer-plan low-cost funds.
Decide Allocation Then Map Accounts
- First decide your target asset allocation, then map what's in each account and implement across accounts.
- Use a spreadsheet to track balances so you can rebalance and place assets efficiently.
One Overall Glide Path Wins
- You care about the overall glide path across all accounts, not separate glide paths for each account.
- Taxable accounts can be aggressive if you'll spend them first because you can rebalance by trading inside tax-protected accounts.