Most people spend time picking investments, but not much time deciding where those investments should actually live. And that “where” can make a bigger difference sometimes than the fund you picked.
I’m Ken Hargreaves, a certified financial planner and founder of WealthGen Advisors.
Back in the 1950s, Harry Markowitz showed that you can build a mix of assets that don’t all move together and, for the same level of risk, get a better overall result. That’s the core of modern portfolio theory: focus on risk-adjusted return, not chasing that one hot idea.
But there’s a second layer that often gets missed. Once you know what you want to own, you can place those investments in different account types—taxable, tax-deferred, or even tax-free—so that you keep more of what they earn. That’s asset location. It’s the same portfolio on paper, but a different outcome after taxes.
In practice, income-heavy or tax-inefficient investments often make more sense in accounts that shelter taxes, and the more tax-efficient long-term growth pieces can stay in the taxable. When you align those two decisions—what to own and where to hold it—the portfolio works more efficiently without taking more risk.
I’m keeping this high-level because the exact setup depends on your tax bracket and the accounts you actually have. If you’re not quite sure how yours is arranged, it’s worth having it reviewed by someone who can run the numbers for your situation.
If that’s you, feel free to reach out.
