Asset location for non-traditional assets + considerations for early retirees

02/02/21 • 35 min

#63: Last time, we talked about general asset location principles, plus best practices for major asset classes like stocks, bonds, and real estate.

But what about non-traditional asset classes?

Also, if you’re planning to early retire, should your asset location considerations change at all...given that you generally cannot touch your tax-advantaged accounts until you’re nearly 60?

This week, we continue our discussion with Jonathan Duong, CFA, about both these topics as they relate to tax-efficient asset location.

We discuss:

Commodities (gold, oil)
Currencies
Illiquid investments like LPs, private equity, private loans, etc
Speculative holdings like Bitcoin, art, collectibles
How asset location considerations might change for early retirees

Listen here:

https://hackyourwealth.com/asset-location-part-2

If you’re thinking about early retirement, what is your asset location plan? What are you holding in your taxable vs. tax-advantaged accounts? Let me know by leaving a comment.

Don't miss an episode, hit that subscribe button...

If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!

I need your help, please leave a listener review :)

If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!

Links mentioned in this episode:

Wealth Engineers
Financial planning software: eMoney, Advyzon, Covisum
Asset location: What assets should you hold in each account to minimize taxes? (HYW062)
How to set your target asset allocation and rebalance your portfolio efficiently (HYW058)
Schedule a private 1:1 consultation with me
HYW private Facebook community

Intro/Outro: Old Bossa by Twin Musicom.

#63: Last time, we talked about general asset location principles, plus best practices for major asset classes like stocks, bonds, and real estate.

But what about non-traditional asset classes?

Also, if you’re planning to early retire, should your asset location considerations change at all...given that you generally cannot touch your tax-advantaged accounts until you’re nearly 60?

This week, we continue our discussion with Jonathan Duong, CFA, about both these topics as they relate to tax-efficient asset location.

We discuss:

Commodities (gold, oil)
Currencies
Illiquid investments like LPs, private equity, private loans, etc
Speculative holdings like Bitcoin, art, collectibles
How asset location considerations might change for early retirees

Listen here:

https://hackyourwealth.com/asset-location-part-2

If you’re thinking about early retirement, what is your asset location plan? What are you holding in your taxable vs. tax-advantaged accounts? Let me know by leaving a comment.

Don't miss an episode, hit that subscribe button...

If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!

I need your help, please leave a listener review :)

If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!

Links mentioned in this episode:

Wealth Engineers
Financial planning software: eMoney, Advyzon, Covisum
Asset location: What assets should you hold in each account to minimize taxes? (HYW062)
How to set your target asset allocation and rebalance your portfolio efficiently (HYW058)
Schedule a private 1:1 consultation with me
HYW private Facebook community

Intro/Outro: Old Bossa by Twin Musicom.

Previous Episode

What assets should you hold in each account to minimize taxes?

#62: It might seem obvious that the best performing car isn’t just a function of the car itself...but also WHERE you’re driving it.

Ferraris vs. Hummers will perform best in very different environments.

When it comes to asset management, a similar thing is true.

A few episodes back, I did a 3-part series on asset allocation. However, asset allocation is only part of the puzzle to optimizing your portfolio.

To maximize total after-tax returns, WHERE you hold your assets is just as important as WHAT assets you hold.

Asset allocation is WHAT you hold.

Asset location is WHERE you hold it.

You have to make sure you drive the Ferrari vs. the Hummer on appropriate terrains.

Asset location strategy is about holding the right asset classes in the right accounts bearing the right tax profile.

The goal is to minimize taxes on the way in, minimize tax drag while you invest, and minimize tax liability upon withdrawal.

How do you do this?

This week, I talk with Jonathan Duong, CFA, about how to manage your asset location to be as tax-efficient as possible. (This is part 1 of a 2-part discussion.)

In addition to best practices and general principles, we discuss optimal asset location for:

Stock holdings (both indexes and individual stocks, both dividend and non-dividend paying)
Non-tax exempt bond holdings
Tax-exempt bonds
REITS
Physical real estate

Check it out here:

https://hackyourwealth.com/asset-location-part-1

What asset location principles are most relevant to you? Let me know by leaving a comment.

Don't miss an episode, hit that subscribe button...

If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!

I need your help, please leave a listener review :)

If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!

Links mentioned in this episode:

Wealth Engineers
Financial planning software: eMoney, Advyzon, Covisum
How to set your target asset allocation and rebalance your portfolio efficiently (HYW058)
Schedule a private 1:1 consultation with me
HYW private Facebook community

Intro/Outro: Old Bossa by Twin Musicom.

Next Episode

How to talk about money when you’re dating

#64: How do you have difficult conversations about money when you’re dating? What words should you use? What do you do if the conversations go south?

This week, I invited Megan McCoy and Ed Coambs, two leading couples therapists who specialize in financial therapy and conflict, to share insights about how to talk about money matters when you’re dating.

We discuss:

Questions to ask (and behaviors to observe) early in a relationship to learn your partner’s financial values
Tips for asking sensitive money-related questions that don’t rub your partner the wrong way
How to handle it if your partner does get defensive or reacts the wrong way
Tips for attracting a partner who shares your financial values
What to do if you’ve met “the one” but have totally different mindsets and behaviors about money

Check it out here:

https://hackyourwealth.com/money-dating

How have you approached talking about money when dating? What tips and best practices have worked for you? What advice do you have for other couples? Let me know by leaving a comment.

Don't miss an episode, hit that subscribe button...

If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!

I need your help, please leave a listener review :)

If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!

Links mentioned in this episode: