Tax-Efficient Fund Placement Calculator

Investing efficiently isn’t just about choosing the right assets — it’s also about placing those assets in the most tax-efficient accounts. The Tax-Efficient Fund Placement Calculator helps you understand how to optimize your investments by splitting them between taxable and tax-advantaged accounts.

This tool shows how much your investments will grow over time, accounting for taxes on returns, and demonstrates the importance of strategic fund placement to maximize your wealth.

How It Works:

1. Amount in Taxable Account ($): Enter the current value of your investments held in taxable accounts (like brokerage accounts).
2. Amount in Tax-Advantaged Account ($): Input the amount saved in tax-advantaged accounts (e.g., 401(k), IRA, Roth IRA).
3. Expected Annual Return (%): Estimate the yearly percentage return you expect from your investments.
4. Holding Period (Years): Specify how long you plan to hold these investments.
5. Tax Rate on Investments (%): Provide the tax rate applicable to your investment gains (capital gains, dividends, etc.).

Why Use This Calculator?

1. Understand Growth Differences: Compare how investments grow with and without tax benefits.
2. Optimize Fund Allocation: Place tax-inefficient investments (e.g., bonds) in tax-advantaged accounts and tax-efficient ones (e.g., index funds) in taxable accounts.
3. Project Future Value: Estimate the future value of each account after accounting for returns and taxes.
4. Strategize Tax Savings: Learn how to reduce your tax burden by adjusting your investment strategy.

Example Scenario:

If you invest $50,000 in a taxable account and $100,000 in a tax-advantaged account, with an expected annual return of 6% over 20 years, and a tax rate of 15% on taxable gains, this calculator will show:

• Future Value of Taxable Account (after taxes and returns)
• Future Value of Tax-Advantaged Account (without taxes)
• Total Future Value of all investments combined

Maximize Your Wealth with Smart Asset Placement

Proper fund placement can have a significant impact on your investment returns. Use this Tax-Efficient Fund Placement Calculator to determine how to allocate your assets across accounts for the best financial outcome. Click Calculate to get a breakdown of your future account values and start planning your tax-efficient investment strategy today!