Asset location

Asset location refers to the way you organize your money in different kinds of accounts. Think of it like organizing your toys in different boxes - you put some toys in a big box, some in a small box, some in a toy chest, and so on.

Similarly, you put some of your money in different accounts like savings accounts, investment accounts, retirement accounts and so on. This is because different accounts have different rules about how you put money in, take money out, and pay taxes.

For example, if you put all your money in a savings account, you might earn a little bit of interest, but you would have to pay taxes on that interest. On the other hand, if you put some of your money into a retirement account, you might not have to pay taxes on that money until you retire, which can save you a lot of money in taxes over time.

So, by choosing where to put your money, you can save money on taxes and earn more on your investments. This is called "asset location" and can make a big difference in how much money you have in the long run.