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145. Asset Allocation vs. Asset Location: The Retirement Planning Strategy Most Investors Miss

Season #2

Episode Title: Asset Allocation vs. Asset Location: The Retirement Planning Strategy Most Investors Miss 

Episode Summary 

Most people have heard of asset allocation — the mix of stocks, bonds, and investments in a portfolio. But almost no one talks about asset location — where those investments are held (taxable, tax-deferred, or tax-free accounts). 

Here’s the truth: You can have the perfect allocation, but if your location strategy is wrong, you could lose tens of thousands of dollars to taxes in retirement. 

In this episode of The Fit Financial Podcast, we’re unpacking the difference between allocation and location, the costly mistakes most investors make, and how you can design a more tax-efficient portfolio that keeps more money in your pocket. 

What You’ll Learn in This Episode 

  • ✅ Asset allocation vs. asset location explained in plain language 
  • ✅ Why focusing only on allocation leaves money on the table 
  • ✅ The best types of assets to hold in taxable, traditional IRA, and Roth IRA accounts 
  • ✅ Common mistakes people make that lead to higher RMDs and unnecessary taxes 
  • ✅ How asset location fits into your retirement withdrawal strategy 
  • ✅ Practical steps to start optimizing your own portfolio today 

Key Takeaways 

  • Allocation is the “what.” It’s the mix of investments that matches your risk tolerance and goals. 
  • Location is the “where.” It’s choosing which accounts hold which investments to maximize tax efficiency. 
  • Getting both right is what separates basic investing from a real fiduciary retirement plan. 

Resources & Links 

 

 

The Fit Wealth Show is brought to you by Plan Group Financial, Inc. (PGF) d/b/a Fit Wealth Advisors. PGF d/b/a Fit Wealth Advisors is an investment adviser registered under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply any level of skill or training. This presentation has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Past performance is not indicative of future results.