Tax and Retirement: The Importance of Asset Location...Location...Location.

bee

Offered on Nov 19th @ 2 pm ET

From the link:

"How should retirees tap various types of accounts—401(k), Roth IRA, IRA, etc.—during retirement from a tax perspective?
This webinar will be a deep dive into the concept of “asset location” which may be as important as asset allocation when it comes to retirement security."

Pre-register here:
Tax and Retirement: The Importance of Asset Location

Research paper published in June 2014 on the same topic:

"When held in the taxable account, equity generates less ordinary income than taxable bonds, provides the investor with a valuable tax-timing option to realize capital losses and defer capital gains, and allows the investor to avoid payment of the tax on capital gains altogether at the time of death. We show a strong preference for holding taxable bonds in the tax-deferred account and equity in the taxable account, reflecting the higher tax burden on taxable bonds relative to equity. Interestingly, the proportion of total wealth allocated to equity is inversely related to the fraction of total wealth in tax-deferred
accounts"

and,

"After retirement, the optimal overall equity proportion should increase slightly with age. This reflects the higher value of equity for elderly investors, who because of their higher mortality rates, benefit the most from the forgiveness of capital gains taxes at death."

Optimal Asset Location and Allocation
with Taxable and Tax-Deferred Investing