No. 67 of 106 Things We Do For Clients
Reposition investments to take full advantage of tax law provisions.
This is also known as “asset location,” which is minimizing the negative impact on your investment returns by knowing which investments to hold in tax-deferred accounts, tax-free accounts, and taxable accounts. Asset location is not an invest-it-and-forget-it function, as changing tax law can often require reversing the entire strategy. Vanguard estimates the value of asset location is worth up to 0.75% annually. That savings alone is often the entire fee of an investment advisor or financial planner.
