Asset location
Glossary · Portfolio construction
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Definition
Choosing which account type (taxable, traditional, Roth) holds each asset, separate from how much of each asset to own. Placing tax-inefficient assets in tax-advantaged accounts reduces tax drag.
Holding bonds in an IRA and broad stock funds in taxable is the classic asset-location pattern.
These definitions describe how ArthaPilot uses each term. For authoritative definitions, consult the SEC, IRS, or a qualified financial advisor.