Tax alpha

[FrankCFA]

Kaplan, B1, P278.
Tax alpha: extra investment value created by effective tax management
Low current income securities (e.g. equities) will held in taxble account location.
Question: Why not everything (equities, bond….) in tax protected account location? Thanks.

 

[S2000magician]

There are usually limits on what you can contribute to tax protected accounts.
Also, tax protected accounts are less liquid (penalties for early withdrawal).