Sep 30, 2020
This week on Grow Money Business we dive into an area that is often overlooked in the investment arena: asset location. Asset location is the concept of placing investment assets in different types of accounts in order to maximize returns. Throughout the episode, Grant dives into how this concept works, what benefits you can get from thoughtfully planned asset location, and what you should keep in mind when implementing this concept in your portfolio.
[01:08] Introduction – What asset location is, how it evolved, and how far asset location can improve your investment returns.
[04:26] Types of Taxation – Grant dives into a few different methods of taxation and how properly planned asset location can be beneficial for you.
[10:47] Implementing Asset Location – How to place different asset classes in various types of accounts in a way that maximizes your investment returns.
[16:15] Expected Return & Tax Efficiency – Grant explains in-depth about two crucial factors you should take into consideration when implementing your asset location strategy.
[21:13] Placing Assets in Different Types of Accounts – Grant reviews some examples of how you can prioritize and place your assets in the right type of account based on tax preference.
[26:44] Adapting to Changing Market Conditions - Market conditions tend to shift due to numerous reasons. Grant explains how you can make tactical shifts in your investment strategy to adapt to new situations.
Resources:
How to Use Strategic Asset Location to Reduce Your Tax Bill -
Above the Canopy:
www.abovethecanopy.us/strategic-asset-location/
Bogleheads Forum:
www.bogleheads.org/wiki/Tax-efficient_fund_placement