Asset Location: How To Lower Your Tax Liability

Asset location helps lower the tax liability on your investment profits by strategically placing assets in different accounts.

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Asset location should not be confused with asset allocation, a mix of different types of investments held in an investment portfolio.

What is Asset Location? The distribution of assets among savings vehicles such as variable life insurance policies, foundations, and onshore versus offshore accounts is referred to as asset location.

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The primary objective of asset location is to minimize taxes. You can also achieve other goals, such as privacy, creditor protection, reduction in risk of government seizure, etc.,

Why is Asset Location Important?

The location of your assets will minimize taxes and increase the tax efficiency of your securities and fixed income portfolio. 

The investment strategy of asset location is sorting your various investments into various types of tax-advantaged accounts.

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