Making fewer things matter helps you focus attention and ward off FOMO and sales pitches. You’ve made it when you can afford all the “mistakes.”
Tax efficient asset placement is directionally correct but the relative sizes of your accounts can put a serious limit on its effectiveness.
Tax efficiency becomes a factor when you have investments in regular taxable accounts (versus a tax advantaged accounts such as a 401k or IRAs). Because you have to pay taxes on interest, dividends, and realized gains, an investment that loses less of its returns to taxes is said to be more tax efficient. Tax efficiency […]