Planning
An Asset Location Strategy Can Unlock the Potential for Building Greater Wealth
April 10, 2025
The compounding effects of strategically placing assets into different “buckets” can produce impressive results.
Many people we’ve spoken with over the years have difficulty differentiating an asset allocation strategy from an asset location strategy. While these techniques are phonetically similar and the effects on your investments and net worth are related, they are fundamentally different.
Asset allocation is the process of determining the right balance of risk and reward according to your goals, risk tolerance and investment horizon (e.g., 60% stocks / 40% bonds, otherwise known as a 60/40 portfolio).
Asset location is used to intentionally place investments, based on their unique characteristics, across different types of accounts or “buckets” (e.g., near-term, intermediate-term and long-term) to optimize the portfolio’s tax-efficiency and build greater long-term wealth (i.e., placing less tax efficient and higher expected long-term growth assets into tax-deferred or tax-free accounts).
The important takeaway is this: you should consider ways in which you can apply both asset allocation and asset location strategies, in tandem, to achieve successful results.
In his latest publication, Wealth Manager Shaan Baren guides you through a simplified study on this planning discipline and the results that can be achieved in it’s utilization.
Whitepaper
An Asset Location Strategy Can Unlock the Potential for Building Greater Wealth
The compounding effects of strategically placing assets into different “buckets” can produce impressive results.
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