December 16, 2013: Tax Efficient Portfolio Planning

by | Dec 17, 2013 | Asset-Allocation, Bonds, Economy, Feature, Gold, Headline, Income, Inv, Investments, IRA, Markets, Mutual-Funds, newsletter, Portfolios, Retirement | 0 comments

Re-balance Cycle Reminder All MyPlanIQ’s newsletters are archived here.

For regular SAA and TAA portfolios, the next re-balance will be on Monday, January 13, 2014. You can also find the re-balance calendar for 2013 on ‘Dashboard‘ page once you log in.

As a reminder to expert users: advanced portfolios are still re-balanced based on their original re-balance schedules and they are not the same as those used in Strategic and Tactical Asset Allocation (SAA and TAA) portfolios of a plan.

Please note that we now list the next re-balance date on every portfolio page.

Tax Efficient Portfolio Planning

Many investors have multiple accounts including various tax deferred accounts such as 401k, IRA or annuity, as well as taxable brokerage accounts. How to efficiently implement investment strategies in these accounts is thus a very common issue. 

Here are the two rules of thumb that can be useful to help you decide what to do in each account.

  • Buy and hold equity or stocks should be in taxable  if it is possible. See Carnegie Mellon University Professor Dammon’s research paper on this topic. 
  • Tactical equity or stocks should be in tax deferred if it is possible. 

You should follow the order of the following three steps: 

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