Tax-Efficient Investing: Picking the Right Pocket for Your Assets

    by William Reichenstein

    Tax Efficient Investing: Picking The Right Pocket For Your Assets Splash image

    One way to foil a pickpocket is to put your money in the right pocket. Similarly, if you want to keep Uncle Sam’s fingers off your assets, you need to put them into the right pocket.

    In this instance, the pockets are either taxable or tax-deferred. And determining which of your assets goes into which type of pocket is a key to minimizing Uncle Sam’s grab.

    This determination is often referred to as the “asset-location” decision, and it is the subject of my column this month, which is the last of a three-part series on tax-efficient investing.

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    → William Reichenstein