By FWSF Member, Brie Ford, Wealth Advisor, Conquis Financial
Tip: Before the calendar flips, a strategic wealth planning move is to conduct a Tax Bucket
Review. It's about optimizing your tax position, not just market performance.
The Vibe: Everyone talks about asset allocation (stocks vs. bonds). But asset location is where the real "rich girl energy" is.
The goal is to determine which type of asset is best suited for each of your three major account types (or "buckets")—Taxable, Tax-Deferred, and Tax-Free. Consider what you hold in each account and whether your placement aligns with this basic principle for long-term efficiency:
|
The Asset's "Personality" |
Where It Might Make Sense |
The Tax Logic to Consider |
|
The Fast-Grower (e.g., Growth Oriented ETFs) |
The Tax-Free Power Suite (Roth IRAs, HSAs) |
To shield the largest potential gains from future taxes. |
|
The Efficient, Steady Grower (e.g., Broad Market ETFs) |
The Totally Taxable Account (Brokerage Accounts) |
These are naturally tax-efficient and qualify for favorable Long Term-Capital Gains (LTCG) tax rates when held for a year or longer. Consider if year-end Tax-Loss Harvesting is an option here. |
|
The High-Income Producer (e.g., Taxable Bonds, High-Dividend Funds, Actively Managed Funds) |
The Tax-Deferred Account (Traditional 401(k)s, Traditional IRAs) |
To shelter highly taxed annual income/gains from the IRS until later. Consider maximizing contributions here to lower your taxable income for this year. |
We are nearing year-end and now is an excellent time to simply ask yourself and your advisor: "Are my investments in the most tax-efficient accounts possible?" A thoughtful review of your asset location could be one of the most valuable financial decisions you make all year.
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This is for educational purposes only and is not personalized financial advice. I am sharing general principles of wealth management, but every individual's financial situation is unique. Before making any investment, tax, or legal decisions, please consult with your personal Certified Financial Planner™ professional or tax professional.
From Connections Newsletter (Member Tips): October 2025
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The suggestions of the contributor do not constitute professional advice and are intended for general informational and educational purposes only. Nothing contained herein is intended to be or should be used as a substitute for professional advice, and readers should not act or rely on this information without seeking specific guidance directly from a qualified professional.
The opinions and information expressed in this blog/post/webpage are solely those of the contributor and do not necessarily reflect the views of FWSF. FWSF is not responsible for any errors or omissions in this content or any damages resulting from its use.