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Asset Allocation vs. Asset Location

Asset Allocation

Asset allocation is investing in different asset classes to reduce your investment risk.

Asset Allocation Chart

The combination of asset classes in your portfolio such as stocks, bonds, and cash

Asset Location

Asset location is investing in different tax locations to reduce your tax liability risk.

Asset Location Chart

The combination of portfolio holdings and tax treatment when withdrawing assets

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Investment allocation, reallocation, and rebalancing addresses the portfolio risks.

Asset location focuses on the risk of taxation on distributions.

Asset allocation, diversification, and rebalancing do not guarantee a profit or protection against loss. Lighthouse Financial does not provide tax or legal advice. You should seek advice based on your particular circumstances from an independent tax advisor. 

All Investment Advisory Services are provided by Waterloo Capital d/b/a Lighthouse Financial, an SEC Registered Investment Adviser. Registration with the SEC does not imply a certain level of skill or expertise. Lighthouse Financial is not affiliated with Waterloo Capital. Additional information about Waterloo Capital d/b/a Lighthouse Financial, is available in its current disclosure documents, Form ADV Part 1A, Form ADV Part 2A Brochure, and Client Relationship Summary, which are accessible online via the SEC’s investment Adviser Public Disclosure (IAPD) database at www.adviserinfo.sec.gov. Waterloo Capital does not offer or provide legal or tax advice. Please consult your attorney and/or tax advisor for such services.

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