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. It never proposes a placement worse than what you already hold.
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 you can check a proposal 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.