Mike and Al explains asset location - placing each investment in the most tax-smart account to boost after-tax returns, e.g., keeping tax-inefficient holdings (like ordinary-income-heavy bonds/REITs) in tax-deferred accounts, and tax-efficient stock index funds in taxable accounts. They note exceptions and nuances (munis typically belong in taxable; high-growth assets often fit best in Roth for tax-free compounding) and stress coordinating location with your overall allocation and withdrawal plan.  They also cover practicalities - rebalancing across accounts and avoiding wash sales when tax-loss harvesting because small frictions can erode the benefit. The takeaway: a documented, account-aware plan can add measurable “free” return over time by minimizing tax drag without changing your risk level.

<p>Mike and Al explains asset location - placing each investment in the most tax-smart account to boost after-tax returns, e.g., keeping tax-inefficient holdings (like ordinary-income-heavy bonds/REITs) in tax-deferred accounts, and tax-efficient stock index funds in taxable accounts. They note exceptions and nuances (munis typically belong in taxable; high-growth assets often fit best in Roth for tax-free compounding) and stress coordinating location with your overall allocation and withdrawal plan. &nbsp;They also cover practicalities - rebalancing across accounts and avoiding wash sales when tax-loss harvesting because small frictions can erode the benefit. The takeaway: a documented, account-aware plan can add measurable &ldquo;free&rdquo; return over time by minimizing tax drag without changing your risk level.</p>