Efficient frontier and taxation

[alwina]

Why the same asset should appear on the efficient frontier in both taxable and nontaxable forms? I don’t get the logic.
There are so many different ways and circumstances of taxation, different assets are treated in a variety of ways…therefore the efficient frontier may change eventually.

 

[ryohko]

you can put the asset in a normal brokerage account in which case it’s taxed normally, or you can put the same asset in a tax efficient account, like a IRA or Roth IRA (very American concepts) where tax is deferred or exempt. So the same asset can be on the efficient frontier in both taxable and non-taxable ways.