Asset Location Strategy -- CleverAlpha
Investment Strategy

Asset Location Strategy

Maximize your after-tax returns through intelligent account placement.

Most investors focus on asset allocation -- what percentage of their portfolio is in stocks vs bonds. But asset location determines where those assets live: taxable brokerage, Traditional IRA, Roth IRA, or 401(k).

Done correctly, asset location can add real alpha and generate accretive dollars in after-tax returns -- without changing your risk profile at all.

CleverAlpha algorithm recommends the placement of tax-inefficient assets (bonds, REITs, high-dividend stocks) in tax-advantaged accounts, and tax-efficient assets (growth equities, ETFs) in taxable accounts.

The Strategy

What is asset location?

Taxable Brokerage
Tax-efficient assets belong here: growth equities, broad market ETFs, municipal bonds. Long-term capital gains rates apply. Best for buy-and-hold, low-turnover strategies.
Traditional IRA / 401(k)
Tax-inefficient assets belong here: bonds, REITs, high-dividend stocks. Contributions are pre-tax; growth is tax-deferred. Withdrawals taxed as ordinary income in retirement.
Roth IRA -- The Moon Shoot
Tax-free growth forever. Best for your highest-expected-return assets: small-cap growth, emerging markets, aggressive equity tilts. Every dollar of gain here is yours -- no tax on withdrawal. Ever.
How CleverAlpha Does It

Automated, personalized, holistic

Dynamic Reoptimization

As tax laws change, your income changes, and new accounts are opened, CleverAlpha recalculates and updates our asset location strategy.

Personalized Placement

CleverAlpha system recommends routing assets to the optimal account type based on their tax characteristics and your current tax situation.

Cross-Account Awareness

The algorithm looks at ALL your accounts holistically -- not just one account in isolation -- to find the globally optimal placement.

Start Capturing Tax Alpha

Maximize After-Tax Returns

Stop leaving tax alpha on the table

Asset location is free alpha. CleverAlpha can attempt to capture it for you - just request and we will advise.

Get Started