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Robo-Advisor Pros

Tax Smart Asset Location Investment Placement – Betterment Offers a Solution

By Barbara Friedberg

“Tax-Coordinated Portfolio optimizes and automates a strategy called asset location. It starts by placing your assets that will be taxed highly in your IRAs, which have big tax breaks. Then, it places your lower-taxed assets in your taxable accounts.

Our research shows that this strategy can boost after-tax returns by an average of 0.48% each year, which approximately amounts to an extra 15% over 30 years.”

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This article originally published October 17th, 2016 on Robo-Advisor Pros