Asset Location

Asset Location Optimizer

Optimize which assets belong in taxable, traditional, and Roth accounts based on your household's tax rates and target allocation.

Asset location is the placement question: with the same target allocation, which holdings should sit in taxable, traditional, and Roth accounts to reduce expected tax drag?

ArthaPilot's optimizer proposes a placement from your household's accounts, tax context, and target allocation, and it never proposes a placement worse than what you already hold.

Open Asset Location toolsOpen allocator example

What it computes

  • A proposed asset-to-account placement that meets the target allocation across the household.
  • Estimated annual tax drag for the current placement and the proposal, using your federal and state assumptions.
  • Placement reasoning per asset class: tax-inefficient income toward tax-advantaged accounts, higher expected growth toward Roth.

How it pairs with backtesting

The optimizer answers where to place assets going forward; the asset-location backtest replays placements against history. The two share the same household context, so a proposal can be checked against the historical comparison.

Access

Setting up a household is free with a signed-in account. Running the optimizer and the asset-location backtest is part of the Pro plan.

FAQ

Will it recommend trades to move my holdings?

No. It proposes a target placement and quantifies the modeled tax-drag difference. Implementation, including the tax cost of getting there, stays a separate decision.

Can the suggestion be worse than my current placement?

No. The engine compares the proposal against your current placement and keeps the current one when it is feasible and already lower-drag.

Related Pages

Asset location backtesting

Replay placement scenarios against history.

Asset location definition

The concept and why account type changes after-tax results.

Household tax simulation

The broader household modeling workflow.