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Where should each holding live.
Asset location is the quiet cousin of asset allocation. Once you have decided what to own, you still get to choose which account holds each piece, and putting tax-heavy holdings in sheltered accounts can save real money over the years. Pick what you hold and the accounts you have, and this suggests sensible placements in plain language. Everything runs in your browser, nothing is saved or sent anywhere.
The idea in a nutshell
Some holdings are tax-inefficient, meaning they throw off interest, non-qualified dividends, or distributions that get taxed every year even if you never sell. Bonds, REITs, and high-yield dividend stocks tend to fall here, so they often belong in tax-sheltered accounts like a Traditional IRA, a 401(k), or a Roth. Broad, low-turnover index funds like VTI are tax-efficient and are usually fine in a taxable brokerage, and international funds in taxable can let you claim the foreign tax credit.
Accounts that shelter growth, like a Roth or an HSA, are most valuable holding whatever you expect to grow the most over time, since that growth comes out tax-free when used as intended. These are general rules of thumb, and the best answer depends on your tax bracket, your state, and your whole picture. This is general educational information, not tax or investment advice, and consider talking with a qualified tax professional before acting.
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