In real estate, value is about where a property sits, not just what's on it. Your investments work the same way. Vanguard found that optimal asset location adds up to 0.75% in value per year.

When I say location, location, location, most people think real estate. In real estate, the value of a property isn't necessarily what's on it. It's where it sits.

As a financial advisor in Lexington, Kentucky, I'd make the same argument for your investments. It's not just what you own. It's where you're holding it. Asset location is the practice of placing the right investments in the right type of account based on how each one is taxed, and Vanguard found that getting this right can add up to 0.75% in value per year.

This episode is week four of our five-week series on Vanguard's Advisor's Alpha, five disciplines that together can add approximately 3% in net returns over time.

WHAT YOU'LL LEARN

•      What asset location is and how it differs from asset allocation

•      Vanguard's finding: tax-efficient equity funds belong in taxable accounts; broad market bonds belong in tax-advantaged accounts

•      Why placement matters most during high-income working years when tax exposure is also at its peak

•      How sheltering tax-inefficient assets in tax-advantaged accounts keeps growth from being taxed annually

•      Why every dollar saved in taxes during high-income years is a dollar that continues to compound

•      How retirement creates a window to reposition assets through tools like Roth conversions

•      Why intentional placement creates smaller, more manageable tax events over time rather than one large burden later

•      Why the best moves are often made years before retirement

Want to look at whether your assets are sitting in the right accounts? That's exactly what this conversation is for.

If you're a family in Lexington, Central Kentucky, or anywhere across the Bluegrass, and you'd like to look at your own account structure to make sure your assets are working as effectively and efficiently as possible, I'd be honored to help you do that.