Skip to content


Illustration of couple standing in front of house

Optimizing For Long-Term Tax Efficiency in Client Portfolios | Michael Finke

Advisors who understand the mathematics of tax-efficient retirement investing can build wealth more efficiently and increase retiree income by more than 10% through smart distribution strategies.

A new framework for understanding the tax efficiency of basis assets such as stocks and insurance products is needed which provides insight into which assets to sell first in retirement to fund income.

By paying attention to marginal tax rates during accumulation and distribution, and the unique characteristics of taxation among account types, advisors can provide true alpha to high income clients whether they are still in their working years or are already retired. This presentation introduces asset location among the four fundamental account types using a net return framework.

In “Optimizing for Long-Term Tax Efficiency in Client Portfolios” by Michael Finke, you will learn:

  • How to build an investing strategy that funds a spending goal with the highest net return for a given level of risk.
  • How to take advantage of asset location strategies to improve clients’ net investment returns.
  • Tax-friendly asset liquidation strategies for clients with a variety of taxable and tax-sheltered accounts.

Meet Michael Finke, PhD, CFP®

Michael Finke is a professor of wealth management and Frank M. Engle Distinguished Chair in Economic Security at The American College of Financial Services. He received a doctorate in consumer economics from the Ohio State University in 1998 and in finance from the University of Missouri in 2011. He leads the O. Alfred Granum Center for Financial Security at the American College and is a research fellow at the Retirement Income Institute, and a member of the Defined Contribution Institutional Investment Association Academic Advisory Council. He also serves on the board of the Puerto Rico Pension Reserve Trust.