
By Patrick Kuster, AIF®
A great deal of attention often goes into deciding what a portfolio should own, especially when tailoring its allocation to specific retirement goals, risk tolerance, time horizon, and other individual factors. But which types of accounts own which investments also deserves careful consideration, as an account’s tax treatment can affect the amount of overall portfolio risk. In other words, you can tilt the overall amount of risk in your portfolio higher or lower depending on whether you place certain investments in your taxable account, traditional IRA, or Roth IRA.