{"id":19607,"date":"2024-04-22T14:56:16","date_gmt":"2024-04-22T14:56:16","guid":{"rendered":"https:\/\/www.beckcapitalmgmt.com\/?page_id=19607"},"modified":"2024-04-22T15:20:43","modified_gmt":"2024-04-22T15:20:43","slug":"a-guide-to-understanding-asset-location-vs-asset-allocation","status":"publish","type":"page","link":"https:\/\/www.beckcapitalmgmt.com\/a-guide-to-understanding-asset-location-vs-asset-allocation\/","title":{"rendered":"A Guide to Understanding Asset Location vs Asset Allocation"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"19607\" class=\"elementor elementor-19607\" data-elementor-post-type=\"page\">\n\t\t\t\t<div class=\"elementor-element elementor-element-57431d3 e-con-full e-flex e-con e-parent\" data-id=\"57431d3\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-23049cf elementor-widget elementor-widget-gusto_page_intro\" data-id=\"23049cf\" data-element_type=\"widget\" data-widget_type=\"gusto_page_intro.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\n        <div class=\"page-intro-w  imaged\">\n            <div class=\"container\">\n                <div class=\"page-intro decorated\">\n\n                                            <div class=\"page-intro__media object-cover\">\n                            <img decoding=\"async\" src=\"https:\/\/www.beckcapitalmgmt.com\/wp-content\/uploads\/2024\/04\/Beck-Capital-Management-Asset-Location-vs-Asset-Allocation.jpeg\" alt=\"page intro\">\n                        <\/div>\n                    \n                    <div class=\"page-intro__content\">\n                        <div>\n                            <h1><b>A Guide to Understanding Asset Location vs Asset Allocation<\/b><\/h1>                                                    <\/div>\n                    <\/div>\n                <\/div>\n            <\/div>\n        <\/div>\n\n\n        \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-f95f153 e-flex e-con-boxed e-con e-child\" data-id=\"f95f153\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4d9aa94 elementor-widget elementor-widget-text-editor\" data-id=\"4d9aa94\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.21.0 - 30-04-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p><span style=\"font-weight: 400;\">Whether you\u2019re financially savvy or just beginning to get more involved with managing your wealth outside a 401k plan, many different terms can sometimes be a bit confusing. For instance, there is a big difference between asset allocation and asset location.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">These are two important wealth management strategies that you should understand. Then, you can develop two distinct investment strategies that you can implement based on your goals, timelines, and tolerance for risk.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">As <\/span><strong><a href=\"https:\/\/www.beckcapitalmgmt.com\/\" target=\"_blank\" rel=\"noopener\">investment advisors in Austin<\/a><\/strong><span style=\"font-weight: 400;\">, we help successful individuals and their families in Texas and nationwide build lasting, durable wealth using asset allocation and asset location strategies tailored to their current circumstances and future requirements.<\/span><\/p><p><span style=\"font-weight: 400;\">In our Quick Guide, we\u2019ll explore these two critical investment strategies that can help you improve your investment results.<\/span><\/p><p><span style=\"font-weight: 400;\">Chapter 1: How to Use Asset Location Strategies to Manage Your Taxes<\/span><\/p><p><span style=\"font-weight: 400;\">Chapter 2: The Role of Asset Allocation and Tax Efficiencies<\/span><\/p><p><span style=\"font-weight: 400;\">Chapter 3: Five Charitable Giving Strategies<\/span><\/p><p><span style=\"font-weight: 400;\">Chapter 4: Balancing Your Portfolio: Asset Allocation Essentials<\/span><\/p><p><span style=\"font-weight: 400;\">Chapter 5: Sector Investing: Strategies for Diversification<\/span><\/p><p><span style=\"font-weight: 400;\">Chapter 6: Sector Investing in an Election Year<\/span><\/p><p>\u00a0<\/p><h3><strong><i>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<a href=\"https:\/\/youtu.be\/It8fq10L9uw?si=BtmF6ldM1PsSZX2r\" target=\"_blank\" rel=\"noopener\">Watch our podcast, \u201cArtificial Intelligence and the Magnificent 7\u201d<\/a><\/i><\/strong><\/h3>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-3ef1f45 e-flex e-con-boxed e-con e-parent\" data-id=\"3ef1f45\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2d0b972 elementor-widget elementor-widget-gusto_chapters\" data-id=\"2d0b972\" data-element_type=\"widget\" data-widget_type=\"gusto_chapters.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\n        <div class=\"with_anchors\">\n            <section class=\"chapters chapters--grid\">\n                <!-- chapters top-->\n                <div class=\"chapters__top chapters-top\" style=\"grid-template-columns: repeat(3, 1fr)\">\n\t\t\t\t                            <a href=\"#chapter-0\" class=\"chapter-item\">\n\t\t\t\t\t\t                                    <div class=\"chapter-item__subtitle chapters__subtitle\">Chapter 1<\/div>\n\t\t\t\t\t\t    \n                            <h3 class=\"chapter-item__title\">How to Use Asset Location Strategies to Manage Your Taxes<\/h3>\n                        <\/a>\n\t\t\t\t                            <a href=\"#chapter-1\" class=\"chapter-item\">\n\t\t\t\t\t\t                                    <div class=\"chapter-item__subtitle chapters__subtitle\">Chapter 2<\/div>\n\t\t\t\t\t\t    \n                            <h3 class=\"chapter-item__title\">The Role of Asset Allocation and Tax Efficiencies<\/h3>\n                        <\/a>\n\t\t\t\t                            <a href=\"#chapter-2\" class=\"chapter-item\">\n\t\t\t\t\t\t                                    <div class=\"chapter-item__subtitle chapters__subtitle\">Chapter 3<\/div>\n\t\t\t\t\t\t    \n                            <h3 class=\"chapter-item__title\">Five Charitable Giving Strategies<\/h3>\n                        <\/a>\n\t\t\t\t                            <a href=\"#chapter-3\" class=\"chapter-item\">\n\t\t\t\t\t\t                                    <div class=\"chapter-item__subtitle chapters__subtitle\">Chapter 4<\/div>\n\t\t\t\t\t\t    \n                            <h3 class=\"chapter-item__title\">Balancing Your Portfolio: Asset Allocation Essentials<\/h3>\n                        <\/a>\n\t\t\t\t                            <a href=\"#chapter-4\" class=\"chapter-item\">\n\t\t\t\t\t\t                                    <div class=\"chapter-item__subtitle chapters__subtitle\">Chapter 5<\/div>\n\t\t\t\t\t\t    \n                            <h3 class=\"chapter-item__title\">Sector Investing: Strategies for Diversification<\/h3>\n                        <\/a>\n\t\t\t\t                            <a href=\"#chapter-5\" class=\"chapter-item\">\n\t\t\t\t\t\t                                    <div class=\"chapter-item__subtitle chapters__subtitle\">Chapter 6<\/div>\n\t\t\t\t\t\t    \n                            <h3 class=\"chapter-item__title\">Sector Investing in an Election Year<\/h3>\n                        <\/a>\n\t\t\t\t                    <\/div>\n\n                <div class=\"chapters__main chapters-main\">\n\t\t\t\t                            <div id=\"chapter-0\" class=\"chapter-info\">\n                            <header class=\"chapter-info__head info-head\">\n\t\t\t\t\t\t\t                                        <div class=\"info-head__subtitle chapters__subtitle\">Chapter 1<\/div>\n\t\t\t\t\t\t\t                                    <h3 class=\"info-head__title\">How to Use Asset Location Strategies to Manage Your Taxes<\/h3>\n                            <\/header>\n                            <div class=\"chapter-info__content info-content\">\n\t\t\t\t\t\t\t    <p><span style=\"font-weight: 400;\">Asset location is a tax management strategy that involves placing your investments in the right types of accounts to <strong><a href=\"https:\/\/www.beckcapitalmgmt.com\/wealth-management\/ways-to-use-asset-location-strategies-to-help-manage-your-taxes\/\" target=\"_blank\" rel=\"noopener\">help maximize tax efficiencies<\/a><\/strong>. The goal is to reduce your tax burden, increasing your net investment returns over time.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Asset location can be particularly beneficial if you are in a higher tax bracket and\/or have significant investments in taxable accounts.<\/span><\/p><p><span style=\"font-weight: 400;\">Also, if you\u2019re investing with a long-term horizon (when you need the assets or income from the assets), the compound effect of tax savings can be substantial. However, initial tax costs may be incurred when reshuffling assets to pursue an efficient location strategy.<\/span><\/p><p><span style=\"font-weight: 400;\">Here are some examples of how you can use asset location strategies to your advantage:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Contribute to Tax-Advantaged Accounts First: Prioritize your contributions to IRA, 401(k), or Roth accounts to take advantage of their current and future tax benefits.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">High Growth Investments in Tax-Deferred Accounts: Place investments expected to appreciate significantly, such as stocks, in tax-deferred accounts to defer taxes on your capital gains.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Assets for Posterity in Taxable Accounts: Keep assets you plan to leave to heirs in taxable accounts to benefit from a stepped-up cost basis, minimizing capital gains taxes when the assets are distributed to heirs.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Risky Investments in Taxable Accounts: More volatile investments have advantages in taxable accounts due to your ability to use tax loss harvesting to offset capital gains.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Less Tax-Efficient Assets in Tax-Advantaged Accounts: Investments that generate significant interest, like corporate and government bonds, are better suited for tax-advantaged accounts to shield the income from taxes.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tax-Free Investments in Taxable Accounts: Investments like municipal bonds, usually tax-exempt, should be held in taxable accounts to take full advantage of their tax-free income.<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">Working with an experienced team of <\/span><strong><a href=\"https:\/\/www.beckcapitalmgmt.com\/retirement-planning\/\" target=\"_blank\" rel=\"noopener\">Austin retirement planners <\/a><\/strong><span style=\"font-weight: 400;\">can help you craft an asset location strategy based on your specific needs, assets, and goals.<\/span><\/p>                                <div class=\"clear\"><\/div>\n                            <\/div>\n                        <\/div>\n\t\t\t\t                            <div id=\"chapter-1\" class=\"chapter-info\">\n                            <header class=\"chapter-info__head info-head\">\n\t\t\t\t\t\t\t                                        <div class=\"info-head__subtitle chapters__subtitle\">Chapter 2<\/div>\n\t\t\t\t\t\t\t                                    <h3 class=\"info-head__title\">The Role of Asset Allocation and Tax Efficiencies<\/h3>\n                            <\/header>\n                            <div class=\"chapter-info__content info-content\">\n\t\t\t\t\t\t\t    <p><span style=\"font-weight: 400;\"><strong><a href=\"https:\/\/www.beckcapitalmgmt.com\/wealth-management\/the-financial-impact-of-asset-allocation-and-tax-efficient-investment\/\" target=\"_blank\" rel=\"noopener\">Asset allocation can be important<\/a><\/strong> as it determines the mix of various asset classes in your portfolio, such as stocks, bonds, cash alternatives, and other types of investments. This mix can balance risk and reward according to your goals, risk tolerance, and investment timeline.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Your allocations may change as you age, especially as you retire. You might have a higher allocation to stocks to benefit from their growth potential in your early and mid-working years. Stocks, despite their volatility, offer the opportunity for higher returns, which is more suitable when you have a long amount of time to recover from potential market downturns.<\/span><\/p><p><span style=\"font-weight: 400;\">As you approach retirement, the focus usually shifts towards preserving capital and generating retirement income. This could mean increasing the proportion of your portfolio's assets in fixed-income investments and more conservative equities. Fixed income is typically considered less risky and can provide a steady income stream, which becomes increasingly important as you enter retirement and start relying on your investments for your day-to-day living costs.<\/span><\/p><p><span style=\"font-weight: 400;\">In addition to stocks and fixed-income investments, it may be appropriate to consider other assets, such as real estate or commodities, which can offer additional diversification benefits. Spreading your assets over multiple less correlated asset classes helps to manage your risk of large losses.<\/span><\/p><p><span style=\"font-weight: 400;\">Tax efficiency, on the other hand, involves structuring investments in an attempt to minimize tax liabilities and maximize after-tax returns. This can be pursued through strategies such as placing high-yield investments in tax-advantaged accounts like IRAs or 401(k)s, taking advantage of tax-loss harvesting, or investing in more tax-efficient alternatives.<\/span><\/p><p><span style=\"font-weight: 400;\">Here\u2019s how tax efficiency plays into this:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">By holding common stocks in taxable accounts, you can sell underperforming investments to realize losses for tax purposes, then repurchase them after 30 days to maintain your preferred allocations.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Investing in multiple tax lots allows for flexibility in realizing losses without liquidating entire positions.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Holding investments for over a year can qualify them for long-term capital gains tax rates, typically lower than short-term rates.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Avoid mutual funds with higher turnover rates. These funds can pass taxable capital gains to you, even in down years.<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">Together, asset allocation and tax efficiency can significantly improve your portfolio's performance. By carefully selecting a suitable mix of assets and employing tax-management investment strategies, you can pursue improved risk-adjusted returns, keep more of your hard-earned money, and possibly reach your financial goals more efficiently.<\/span><\/p><p><span style=\"font-weight: 400;\">Not sure if your investments are allocated correctly? Consider partnering with a fiduciary <\/span><strong><a href=\"https:\/\/www.beckcapitalmgmt.com\/investment-management\/\" target=\"_blank\" rel=\"noopener\">investment advisor in Austin<\/a><\/strong><span style=\"font-weight: 400;\"> to analyze your current portfolio.<\/span><\/p>                                <div class=\"clear\"><\/div>\n                            <\/div>\n                        <\/div>\n\t\t\t\t                            <div id=\"chapter-2\" class=\"chapter-info\">\n                            <header class=\"chapter-info__head info-head\">\n\t\t\t\t\t\t\t                                        <div class=\"info-head__subtitle chapters__subtitle\">Chapter 3<\/div>\n\t\t\t\t\t\t\t                                    <h3 class=\"info-head__title\">Five Charitable Giving Strategies<\/h3>\n                            <\/header>\n                            <div class=\"chapter-info__content info-content\">\n\t\t\t\t\t\t\t    <p><span style=\"font-weight: 400;\"><strong><a href=\"https:\/\/www.beckcapitalmgmt.com\/wealth-management\/four-charitable-giving-strategies-to-lower-your-2024-tax-bill\/\" target=\"_blank\" rel=\"noopener\">Charitable giving can also play a role in your tax strategy<\/a><\/strong>. While there are many sophisticated strategies to choose from, the following are five of the more common ones:<\/span><\/p><ol><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Donating Appreciated Assets: Consider donating stocks or other assets that have increased in value. This strategy allows donors to avoid paying capital gains taxes on the appreciation while qualifying for a tax deduction based on the asset's current value.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Bunching Donations: Accumulate charitable contributions that may occur over multiple years into one large donation. This approach can help you exceed the standard deduction threshold, making itemized deductions more beneficial for a particular tax year.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Donor-Advised Funds (DAFs): Contribute to a DAF and receive an immediate tax deduction. Then, over time, recommend grants from the fund to your chosen charities. This allows the retention of control for strategic, organized giving without establishing a private foundation.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Qualified Charitable Distributions (QCDs): For those over 70\u00bd, donating directly from an IRA to a charity can count towards the required minimum distribution. Donated amounts are not considered taxable distributions.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Charitable Trusts: Establish a charitable trust, such as a Charitable Remainder Trust (CRT) or Charitable Lead Trust (CLT), to provide income to the donor or other beneficiaries, with the remainder going to charity, usually upon the demise of both spouses. This can provide tax benefits and potentially increase the amounts distributed to heirs and charities.\u00a0<\/span><\/li><\/ol><h3><strong><i>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<a href=\"https:\/\/youtu.be\/iuzcukqzYtk?si=o-LkFD-P16IRh--l\" target=\"_blank\" rel=\"noopener\">What\u2019s Going on With the Fed? Watch our podcast!<\/a><\/i><\/strong><\/h3>                                <div class=\"clear\"><\/div>\n                            <\/div>\n                        <\/div>\n\t\t\t\t                            <div id=\"chapter-3\" class=\"chapter-info\">\n                            <header class=\"chapter-info__head info-head\">\n\t\t\t\t\t\t\t                                        <div class=\"info-head__subtitle chapters__subtitle\">Chapter 4<\/div>\n\t\t\t\t\t\t\t                                    <h3 class=\"info-head__title\">Balancing Your Portfolio: Asset Allocation Essentials<\/h3>\n                            <\/header>\n                            <div class=\"chapter-info__content info-content\">\n\t\t\t\t\t\t\t    <p><span style=\"font-weight: 400;\">Proper asset allocation is important for a more balanced approach to investing. Each strategy offers a unique approach for balancing risk and returns while aligning with your financial goals, investment horizons, and risk tolerance.<\/span><\/p><p><span style=\"font-weight: 400;\">Strategic Asset Allocation is a long-term approach that sets target allocations for various asset classes and periodically rebalances the portfolio to these targets. It reflects your risk tolerance and investment horizon, staying relatively constant over time unless there's a significant change in your situation, financial goals, or risk profile.<\/span><\/p><p><span style=\"font-weight: 400;\">Tactical Asset Allocation is an active strategy allowing short-term change from a strategic asset allocation to exploit current market opportunities or avoid potential downturns. Regular monitoring and adjustments to the portfolio based on short-term market outlooks are required.<\/span><\/p><p><span style=\"font-weight: 400;\">Dynamic Asset Allocation adjusts your investment mix in response to changing market conditions and economic indicators, such as inflation or rising interest rates, in an attempt to protect the portfolio from downside risk or capitalize on growth opportunities.<\/span><\/p><p><span style=\"font-weight: 400;\">Core-Satellite Asset Allocation involves using a 'core' portfolio, which is a large part of the invested assets, using a passive management strategy, and adding 'satellite' investments to seek higher returns actively. The core provides stability, while satellites aim to add alpha or excess returns.<\/span><\/p><p><span style=\"font-weight: 400;\">Age-based (Lifecycle) Asset Allocation is tailored to your age and becomes more conservative as you approach retirement and your early, mid, and late retirement years. It typically involves a higher proportion of stocks if you are younger and gradually shifting towards more bonds and other types of fixed-income investments as you age.<\/span><\/p><p><span style=\"font-weight: 400;\">As you can see, there are several ways to invest your assets that can help manage your risk and seek to improve your returns. This is where the power of working with an experienced <\/span><strong><a href=\"https:\/\/www.beckcapitalmgmt.com\/why-bcm\/\" target=\"_blank\" rel=\"noopener\">wealth manager in Austin<\/a><\/strong><span style=\"font-weight: 400;\"> can benefit you.<\/span><\/p>                                <div class=\"clear\"><\/div>\n                            <\/div>\n                        <\/div>\n\t\t\t\t                            <div id=\"chapter-4\" class=\"chapter-info\">\n                            <header class=\"chapter-info__head info-head\">\n\t\t\t\t\t\t\t                                        <div class=\"info-head__subtitle chapters__subtitle\">Chapter 5<\/div>\n\t\t\t\t\t\t\t                                    <h3 class=\"info-head__title\">Sector Investing: Strategies for Diversification<\/h3>\n                            <\/header>\n                            <div class=\"chapter-info__content info-content\">\n\t\t\t\t\t\t\t    <p><span style=\"font-weight: 400;\">Sector investing involves targeting specific sectors of the economy, seeking to capitalize on trends or developments within those areas. An example of strategies for diversification in sector investing could be focusing on the technology and healthcare sectors when technological advancements and healthcare innovations are positively impacting the profitability of companies.<\/span><\/p><p><span style=\"font-weight: 400;\">Let\u2019s say you allocate a portion of your portfolio to technology due to the increasing reliance on digital solutions, AI, and other software. You expect growth from companies developing new technologies, software, cloud computing, and cybersecurity solutions.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Simultaneously, you could invest in the healthcare sector, anticipating growth from biotechnology firms, pharmaceutical companies, and other healthcare providers, especially when healthcare innovation is increasingly important for 78 million baby boomers and future generations.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">This approach allows you to spread risk across different sectors with the potential for growth due to evolving innovations.<\/span><\/p>                                <div class=\"clear\"><\/div>\n                            <\/div>\n                        <\/div>\n\t\t\t\t                            <div id=\"chapter-5\" class=\"chapter-info\">\n                            <header class=\"chapter-info__head info-head\">\n\t\t\t\t\t\t\t                                        <div class=\"info-head__subtitle chapters__subtitle\">Chapter 6<\/div>\n\t\t\t\t\t\t\t                                    <h3 class=\"info-head__title\">Sector Investing in an Election Year<\/h3>\n                            <\/header>\n                            <div class=\"chapter-info__content info-content\">\n\t\t\t\t\t\t\t    <p><span style=\"font-weight: 400;\">Elections can introduce uncertainty into the markets, creating a more complex range of possible solutions. While the long-term market impact of elections might be limited, individual sectors can experience significant volatility based on election results, the impact of special interest groups, and subsequent changes in policies that impact your investments.<\/span><\/p><p><span style=\"font-weight: 400;\">Key factors to watch:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tax policies, spending priorities, and regulatory changes can profoundly affect specific industries<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Staying informed and flexible allows you to adjust your sector investments in anticipation of or in response to political and economic shifts<\/span><\/li><\/ul><p><span style=\"font-weight: 400;\">To learn more about Beck Capital Management\u2019s asset allocation and asset location services, we invite you to <\/span><strong><a href=\"https:\/\/www.beckcapitalmgmt.com\/contact-us\/\" target=\"_blank\" rel=\"noopener\">connect with us<\/a><\/strong><span style=\"font-weight: 400;\">.<\/span><\/p>                                <div class=\"clear\"><\/div>\n                            <\/div>\n                        <\/div>\n\t\t\t\t                    <\/div>\n            <\/section>\n        <\/div>\n\n        \t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-00e08c5 elementor-widget elementor-widget-image\" data-id=\"00e08c5\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.21.0 - 30-04-2024 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/info.beckcapitalmgmt.com\/ebook\/retire-with-confidence\" target=\"_blank\">\n\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"600\" height=\"400\" src=\"https:\/\/www.beckcapitalmgmt.com\/wp-content\/uploads\/2023\/09\/Retire-with-Confidence_Beck-Capital-Management.jpg\" class=\"attachment-large size-large wp-image-19184\" alt=\"\" srcset=\"https:\/\/www.beckcapitalmgmt.com\/wp-content\/uploads\/2023\/09\/Retire-with-Confidence_Beck-Capital-Management.jpg 600w, https:\/\/www.beckcapitalmgmt.com\/wp-content\/uploads\/2023\/09\/Retire-with-Confidence_Beck-Capital-Management-500x333.jpg 500w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-358d2a5 elementor-widget elementor-widget-text-editor\" data-id=\"358d2a5\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h6><span style=\"font-weight: 400;\">Nothing contained herein is to be considered a solicitation, research material, an investment recommendation or advice of any kind. The information contained herein may contain information that is subject to change without notice.\u00a0 Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor.<\/span><\/h6><h6><span style=\"font-weight: 400;\">Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions.<\/span><\/h6><h6><span style=\"font-weight: 400;\">Neither Asset Allocation nor Diversification guarantee a profit or protect against a loss in a declining market.\u00a0 They are methods used to help manage investment risk.<\/span><\/h6><h6><span style=\"font-weight: 400;\">Past performance is no guarantee of future results. Investing in the stock market involves gains and losses and may not be suitable for all investors.\u00a0<\/span><\/h6><h6><span style=\"font-weight: 400;\">Rebalancing can entail transaction costs and tax consequences that should be considered when determining a rebalancing strategy.<\/span><\/h6><h6><span style=\"font-weight: 400;\">Sector Strategies: Portfolios that invest exclusively in one sector or industry involve additional risks. The lack of industry diversification subjects the investor to increased industry-specific risks.<\/span><\/h6><h6><span style=\"font-weight: 400;\">Beck Capital Management does not offer legal or tax advice. This information should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. Before making any decision or taking any action, you should consult with a qualified professional.<\/span><\/h6><h6><i><span style=\"font-weight: 400;\">Donor-Advised Funds can have fees and minimum donation requirements. Donations are irrevocable and assets can remain in the fund indefinitely. Although you can make suggestions as to which charities receive your distributed assets, the broker has the final say. <\/span><\/i><\/h6>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-2487f20 e-flex e-con-boxed e-con e-parent\" data-id=\"2487f20\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-8f6ca50 elementor-widget elementor-widget-heading\" data-id=\"8f6ca50\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.21.0 - 30-04-2024 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h3 class=\"elementor-heading-title elementor-size-default\">READY TO LEARN ABOUT OUR 30,000 \nFOOT VIEW OF THE WORLD?\n<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5ae887e elementor-widget elementor-widget-text-editor\" data-id=\"5ae887e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Connect with us to learn more about our in-house investment research and management process.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-07729ba elementor-widget elementor-widget-gusto_button\" data-id=\"07729ba\" data-element_type=\"widget\" data-widget_type=\"gusto_button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\n        <a class=\"btn btn-primary \" href=\"\/contact-us\/\" target=\"_blank\">\n            Connect WIth Us        <\/a>\n\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>A Guide to Understanding Asset Location vs Asset Allocation Whether you\u2019re financially savvy or just beginning to get more involved with managing your wealth outside a 401k plan, many different terms can sometimes be a bit confusing. For instance, there is a big difference between asset allocation and asset location.\u00a0 These are two important wealth [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":19608,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"coauthors":[112],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A Guide to Understanding Asset Location vs Asset Allocation - Beck Capital Management<\/title>\n<meta name=\"description\" content=\"Understand the differences between asset location and asset allocation to optimize your investment strategy and enhance your financial portfolio&#039;s efficiency.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.beckcapitalmgmt.com\/a-guide-to-understanding-asset-location-vs-asset-allocation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Guide to Understanding Asset Location vs Asset Allocation - 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