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Portfolios 505: What Goes Where? The Art of Asset Location

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1.
Which investments do an effective job of restraining capital gains distributions?
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All of the above. All of these investments are structured in such a way as to keep the lid on capital gains distributions.
2.
Why would exchange-traded funds be good choices to be held in taxable accounts?
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They limit capital gains payouts. This is a feature that is built in to them.
3.
In general, which investments below are not good choices for tax-sheltered accounts?
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Non-dividend paying stocks. Long-term capital gains, which is what you have when you sell a stock that you've held for at least a year, are taxed at a much lower rate than is bond income or dividends.
4.
Cash investments are taxed at ordinary income rates, meaning it's wise to put them in tax-sheltered accounts to cut down on your tax burden. But you might want to contradict that advice because _______.
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Both of the above. Sometimes practical needs just outweigh tax needs.
5.
Which statement below is true?
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You should review your asset location framework every few years. You should review your framework every few years, as tax treatments of investments can change over time.