After-Tax Asset Allocation: Building Better Portfolios for the Individual Investor

Hill, Sally A.
February 1998
Journal of Financial Planning;Feb1998, Vol. 11 Issue 1, p71
Academic Journal
This article focuses on the use of after-tax asset class assumptions in the optimization process. It demonstrates how after-tax asset allocation could have led to more effective investment decisions for the taxable investor. The ideas presented in this article are based on analyses performed by Richard B. Harper, Jr., of John Nuveen & Company, Incorporated. The research findings are presented in their entirety in two research reports published by Nuveen: "Two Is Still Greater Than One," February 1997, and "Measuring What You Keep," April 1997. The conclusions reached through Harper's research and presented in this article are based on a hypothetical investor earning an annual income of $100,000 in 1996 dollars during the 1977-1996 time period.


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