Most investment advisors will help you determine the proper asset allocation between your stocks, bonds, etc. based upon your age and risk tolerance. Then they utilize identical asset allocations to invest your personal, retirement plan, and IRA funds. Below, we discuss why this “cookie-cutter approach” can cause you to pay excessive income taxes and assume unnecessary risk in this volatile investment climate.
Reducing Taxes With Proper Asset Location
While you may have an optimal overall asset allocation (i.e., 70% stock/30% bonds), you should use different asset allocation percentages among...
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