How does PortfolioPilot help me optimize asset location?
This question is about asset location - which account types to hold different assets in - not asset allocation (how much of each asset class to own). Asset location is the strategy of placing investments in taxable, tax-advantaged, or tax-free accounts to minimize your overall tax burden. PortfolioPilot factors account tax status into its recommendations and analysis. Here are the ways to get the most from it:
Option 1 - Tag each account correctly:
- Go to Track → Net Worth → click the edit (pencil) icon on each account
- Set Tax Treatment to: "Taxable" (brokerage), "Tax-Advantaged" (traditional IRA/401k), or "Tax-Free" (Roth IRA)
- The recommendation engine uses this to avoid suggesting tax-inefficient assets in taxable accounts when you have sheltered space
Option 2 - Use Asset Groups to optimize each account type separately:
- Create separate Asset Groups for your taxable and tax-advantaged accounts (Track → Asset Groups)
- Set different risk preferences and strategies per group to reflect their different roles
Option 3 - Tax Optimization tools (Gold and above):
- Go to Improve → Tax optimization to identify tax-loss harvesting opportunities across your accounts
- Tax-efficient distribution advice is available on Platinum and above
Note: PortfolioPilot provides analytical guidance to support your decisions. For personalized tax advice specific to your situation, we recommend consulting a CPA or tax advisor.
