Using old rules of thumb to guide decisions on where to locate assets in clients' portfolios can lead to sub-optimal decisions. In this conversation, Michael Kitces advocates for including both tax efficiency and expected returns as the relevant dimensions that should guide decisions on whether to locate assets in tax-sheltered or taxable accounts. He also reviews the common client behavioral responses that can derail otherwise optimal plans and suggests a method for developing asset location strategy.

The Take 15 Series is a series of short interviews with leading practitioners on timely topics focused on the investment profession.