The Situation

The Account Placement Problem

Tax efficiency in investing is not about picking different investments — it is about placing the right investments in the right account types. A high-dividend fund in a taxable account creates an annual tax drag. The same fund in a tax-deferred account eliminates that drag entirely. The investment hasn't changed. The outcome has.

Tax efficiency is not about avoiding taxes. It is about controlling when and how much you pay — and placing that control where it compounds most.

— Worthune Decision Framework

• Your investments are spread across account types without a deliberate placement strategy
• You hold high-dividend or bond funds in a taxable brokerage account
• You've never considered which investment types belong in which account structure