Asset allocation is the combination of asset classes in your portfolio, such as stocks, bonds, and cash.
Asset location refers to the way your asset will be taxed upon distribution. The three locations are: capital gains, ordinary income, and tax free.
Asset location and asset allocation work hand-in-hand to ensure that you are diversifying your portfolio, managing your risks, and investing in a way that is as tax efficient as possible.
Asset allocation, diversification and re-balancing do not guarantee a profit or protection against loss.
Once your ideal mix of tax-favored benefits has been decided, we will determine the optimal amount to invest into each location.
There are three phases to every investment: contribution, accumulation, and distribution.
The 4 quadrants determine how assets are taxed at each phase of the investment.
Start investing in the right locations to help reduce your tax liability risk, and get back to doing what you love.
The earlier you start planning and investing, the more potential benefits you will see.
Why you may need and asset location plan.
