|Investors' Silent Business Partner|
A similar situation exists when it comes to the location of investments among taxable, IRA, and Roth IRA accounts. Where should stocks be held? Where should bonds be held? How does anticipated time of holding come into play? How do expectations of future tax rates come into play?
These questions are addressed in this short article, "Asset Location, as Well as Allocation, Matters for Retirees" by Mark McLaughlin, to at least get do-it-yourself investors thinking about tax strategy. This is not an easy area and is definitely not trivial. The whole investment process is about managing risk and return over a long period of time such that the most ends up in your pockets and not your silent business partner's (Uncle Sam) pockets. In fact, this is one area where a bit of consultation can yield/produce more dollars than the consultation costs.