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Phase 4 · Investment Strategy

Asset Location Analyzer

Which dollars belong in which tax bucket? Optimize placement across taxable, tax-deferred, and tax-free accounts to maximize after-tax wealth using Three-Bucket Tax Strategy / industry standard investment-planning principles.

Inputs

Portfolio
Bucket Allocation 100%
Taxable %30%
Tax-Deferred %55%
Tax-Free (Roth/LIRP) %15%
Asset Class Allocation 100%
US Large Cap40%
US Small Cap15%
International15%
Bonds / Fixed Income25%
REITs / Alts5%
Tax Rates
Current Marginal Rate24%
Retirement Tax Rate22%

📋 Quick Profiles

Bucket Snapshot
Current After-Tax Wealth
$0
As placed today
Optimal After-Tax Wealth
$0
If repositioned per rules
Location Improvement
$0
Lifetime after-tax gain
Current Placement Asset class × Tax bucket ($)
Optimal Placement ★ Per fiduciary investment-planning rules
Location Mismatch Flags
Projected After-Tax Wealth
Current vs. optimal location over horizon
Tax Bucket Mix
Target: ≤ $400K per spouse in tax-deferred
The Asset Location Insight:
  • Allocation ≠ Location. Two investors with identical 60/40 portfolios can end up with very different after-tax wealth depending on which dollars are in which tax bucket.
  • Tax-inefficient assets belong in shelters. Bonds, REITs, and high-turnover funds throw off ordinary-income distributions — shield them in tax-deferred or tax-free accounts.
  • Tax-efficient indexes go taxable. Low-turnover index funds qualify for long-term cap gains and step-up basis at death — wasted in a shelter.
  • Highest-growth assets belong in Roth. Small caps, emerging markets, and aggressive growth grow tax-free forever in a Roth/LIRP — maximum compound tax savings.
  • the "$400K tax-deferred rule": When tax-deferred balances exceed ~$400K per spouse, RMDs in retirement push Social Security into the taxable zone. Excess should be Roth-converted before age 73.
Asset location analysis prepared by Nate Cocco, ChFC · Series 65/7/6. Tax-aware portfolio construction per industry standard investment planning standards.
Specific tax recommendations should be confirmed with a tax professional.
Disclaimer. Third-party product names and methodology names are the property of their respective owners. Reference does not imply endorsement or affiliation. This tool is the work product of Nate Cocco; the analysis is reviewed by Nate before any client recommendation.