“There is an immense amount of misunderstanding, even among financial advisers, regarding what to put in a Roth IRA. Asset location is a very important topic that has a real impact on the accumulation of wealth,” writes Jim Dahle.
Bottom line: “If you put your riskier, higher-expected return, asset classes preferentially into tax-free accounts, you will probably have a bigger nest egg in the future. However, that is because you took on more risk, not because there is some magic free lunch there.”
Joshua Holt is the founder of FIREwire, a site that aggregates personal finance, investing and financial independence stories. He is also the creator of