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One of the lesser-known parts of this process is called asset location, which involves strategically placing your investments into different types of accounts based on their tax impact.

Too Much of a Good Thing: There is a fine line between strategy and over-optimization. If you focus too much on tax savings, you can unintentionally create problems—like making your money less accessible, complicating rebalancing, or even interfering with your legacy goals. The real key is ensuring all moves mirror your unique financial preferences and goals, so in that light, here are some important highlights:

📌 For many, asset location can boost long-term returns by 0.10–0.30 percent annually

📌 Most helpful for higher-income investors or those with bond-heavy portfolios

📌 Could improve the tax efficiency of your legacy, but may conflict with liquidity or rebalancing needs

Remember: Your investment strategies—including asset location—should serve your lifelong goals and purpose, not just a spreadsheet.