For the Monday, August 15th episode, Mike Piper (AKA Oblivious Investors) returns! We'll be going live at 12:00 PM PST / 3:00 PM EST.
On the topic of bequest allocation and location, Mike shares:
You can submit your questions below for Mike. (I may include your question in the episode. No guarantees.) Or, you can ask your questions live by joining us on Twitter Spaces.In financial planning we talk a lot about asset allocation — what portion of your portfolio is allocated to US stocks, international stocks, bonds, etc. And we talk about asset location as well, which is the idea that you can achieve tax savings by making sure your least tax-efficient assets are in retirement accounts rather than in taxable accounts where they’ll generate considerable tax costs each year. (For example, if you own a high-yield bond fund or actively managed stock funds with high turnover, it’s best not to own them in taxable accounts.)
I would like to propose the terms bequest allocation and bequest location as well.
Your bequest allocation is what portion of your assets will go to which parties, upon your death (or upon the second death of you and your spouse).
And the bequest location concept is analogous to asset location. That is, after deciding your bequest allocation, it’s wise to take some time to think about which assets should be used to satisfy which parts of your bequest allocation.
The idea is: prioritize Roth for humans, prioritize tax-deferred for charity. And to the extent possible, especially prioritize Roth assets for humans with the highest tax rates.
When we're within one week of the event, I'll include a link.
While anyone can listen to a live Twitter Space event on desktop, you'll need to be using the Twitter app from a mobile device to ask questions (if you’d like to participate in the Q&A).
If you're not already signed up for Twitter, you can do so here: https://twitter.com/. You can sign up with your Google or Apple account, or via phone, or by email.
Looking forward to seeing you there.
P.S. Listen to past episodes of Bogleheads® Live via the podcast: https://www.buzzsprout.com/1973223
The Bogleheads® Live series is hosted by me, Jon Luskin, CFP®, a long-time Boglehead®. This podcast is supported by the John C. Bogle Center for Financial Literacy, a non-profit organization approved by the IRS as a 501(c)(3) public charity on February 6, 2012. Your tax-deductible donation to the Bogle Center is appreciated. You can donate at https://boglecenter.net/donate.