Asset location in tax-deferred and conventional savings accounts

• 成果类型: Article
• 署名作者: Shoven, JB; Sialm, C
• 署名单位: University of Michigan System; University of Michigan; Stanford University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/S0047-2727(02)00083-X
• 发表日期: 2004
• 页码: 23-38
• 关键词: asset location; asset allocation; investment income taxation; tax-qualified accounts; tax-exempt assets

摘要

This paper derives optimal asset allocations (which assets to hold) and asset locations (in which accounts to hold them) for a risk-averse investor saving for retirement. The investor can hold taxable corporate bonds, tax-exempt municipal bonds, and stocks either in a tax-deferred or a conventional taxable savings account. Taxable bonds have a preferred location in the tax-deferred account and tax-exempt bonds have a preferred location in the taxable account for investors in sufficiently high tax brackets. Tax-efficient stock portfolios (e.g. passively-managed mutual funds) should be held in the taxable account and tax-inefficient stock portfolios (e.g. actively-managed mutual funds) should be held in the tax-deferred account. We show that locating assets optimally can significantly improve the risk-adjusted performance of retirement saving. (C) 2002 Elsevier B.V. All rights reserved.