Asset Location Optimizer

Which assets should live in which accounts? Optimize placement to minimize your lifetime tax drag.

Your Account Balances

Taxable Brokerage

Pay tax on dividends & gains

Tax-Deferred

401(k), Traditional IRA

Tax-Free (Roth)

Roth IRA, Roth 401(k)

Target Asset Allocation

🇺🇸 US Stocks (low dividend, qualified)45%

🌏 International Stocks20%

📜 Bonds (taxable interest)25%

🏢 REITs (non-qualified dividends)10%

Optimal Asset Placement

Asset

Best Home

Reason

Bonds

Tax-Deferred

Interest taxed as ordinary income

REITs

Tax-Deferred / Roth

Non-qualified dividends hurt in taxable

High-Growth Stocks

Roth

Maximize tax-free compounding

Broad US Index

Taxable / Roth

Low turnover, qualified dividends

International Stocks

Taxable

Foreign tax credit only usable in taxable

Estimated Annual Tax Drag Saved

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by optimizing asset location vs. mirroring allocation across accounts

30-Year Cost of Tax Drag — Optimized vs. Mirrored

Asset location is free alpha. Same allocation, same returns, but putting the right assets in the right accounts can save thousands per year in taxes and hundreds of thousands over a career. The bigger the portfolio, the bigger the savings.

Asset Location Optimizer

The Asset Location Optimizer answers one of the highest-leverage questions in tax-efficient investing: which assets should live in which accounts to minimize your lifetime tax drag? Enter the balance of your taxable brokerage, tax-deferred accounts, and Roth accounts, then set your target allocation across US stocks, international stocks, bonds, and REITs. The calculator applies the textbook rules, pushing tax-inefficient assets like bonds and REITs into sheltered accounts while keeping tax-efficient international and broad US stocks in taxable for foreign tax credits and favorable long-term capital gains treatment. A recommendations table explains the reasoning behind each placement rule, and the results show your estimated annual tax drag savings plus the 30-year cumulative cost of mirroring versus optimizing. It's the calculator that proves asset location is free alpha: same allocation, same returns, but thousands more in your pocket every year.