Taxable vs. tax-advantaged accounts – Where you hold your investments matters

Description

Abstract: When investing for retirement, people usually prefer tax-advantaged accounts, such as IRAs, 401(k)s or 403(b)s. But investments such as municipal bonds and passively managed index mutual funds may be better for traditional taxable accounts. This article unpacks why the more tax efficient an investment, the more benefit investors get from owning it in a taxable account, and vice versa.