Linda Lubitz Boone, CFP®
April 7, 2023

Investors are often preoccupied with generating attractive returns and managing risk in their portfolios. However, one aspect that should not be overlooked is the tax efficiency of our investments. Diversified portfolios hold a wide range of investments with different asset classes/securities having different return and tax efficiency characteristics. Tax-efficient asset class placement can have a significant impact on long-term wealth accumulation and should be an integral part of any investor’s strategy. This is a strategy that we, at Meira, have regularly used over the years.

Why Tax Efficiency Matters: The primary goal of tax-efficient asset class placement is to minimize the tax burden associated with investment returns. By strategically locating investments in the appropriate account types, such as taxable (e.g., a brokerage account), tax-deferred (e.g., an IRA or 401K/403B account), or tax-free accounts (e.g., Roth IRA account), we can potentially maximize after-tax returns and enhance our wealth accumulation over time. Several well-regarded studies—especially one in 2013 by Blanchett & Kaplan—demonstrate that an investor could expect an additional 23 basis points of return by utilizing an asset location strategy (see definition below).

Michael Kitces, one of our profession’s thought leaders, suggests the following key principles to consider for tax-efficient asset class placement:

Source: Michael Kitces FPA 2017 NorCal Conference

We believe that tax-efficient asset class placement is a critical component of successful portfolio management. By considering the tax implications of different asset classes and strategically locating investments across various account types, you can enhance after-tax returns and potentially achieve your long-term financial goals more efficiently. One of our goals in managing our clients’ investment portfolios is to use a tailored strategy that optimizes tax efficiency—helping our clients to minimize unnecessary tax burdens, where possible, and keep more of their hard-earned wealth in-hand.

Linda Lubitz Boone, CFP®
September 5, 2023
Estate Planning From the Heart
I believe that life is about living well and dying well. Have you heard about the Conversation Project? I hadn’t until just recently when one of my favorite newspaper columnists, Ellen Goodman, resurfaced in a Google search about end-of-life issues. Many of you—in my age range—may be very familiar with Ellen, a Boston Globe and Pulitzer Prize winner whose columns chronicled social change and its impact on American life.
Deborah Badillo, CFP®
Client Advisor
July 11, 2023
Tips for Aging in Place
For those not familiar with the phrase “aging in place,” simply put, it refers to choosing to stay in your home with family, friends, and neighbors around you as you grow older (instead of moving to a residential facility designed to support long-term care, such as an assisted-living facility)
Rubina Hossain, CFP®
Client Advisor
August 8, 2023
Financial Wellness
You may have heard the term Financial Wellness tossed around on the web over the past few years—especially since the onset of the pandemic. I have always believed in this concept and am happy to hear it has gained a lot of traction—if one doesn’t feel financially well it can lead to all sorts of stresses and impact one’s mental health.
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