I have a question about asset location. I currently have 85% in equity and 15% in bond allocation. I understand that bonds are not tax-efficient and that it’s best to keep them in tax-advantaged accounts. I have a much larger percentage of my portfolio that is taxable, so that means that my tax-deferred accounts are almost entirely in bonds. That means that my tax-deferred accounts will most likely grow at a much lower rate than my taxable which is all equities. This doesn’t sit well with me. Is this the proper approach?

We build income-focused portfolios for our clients with a buy and hold, long term time horizon in mind. We allocate fixed income to Qualified Accounts (IRA and 401k) because this shields the client from paying ordinary income taxes on the income being generated on a monthly or quarterly basis. They only pay the ordinary taxes […]

Is it better to take a lump sum or monthly pension?

I think your question gets into a very significant topic of what you need versus you want and where those sources of income are coming from. Some important factors to consider are: Family longevity Is the pension inflation adjusted or stagnant over the life Risk tolerance as an investor Long-Term Care planning When do you […]