The Tax-Friendly model is designed for nonqualified accounts (individual, joint, trust accounts, etc.). The portfolio was selected because of its low-activity nature. This means internal transactions will be held to a minimum to reduce annual capital gain exposure. Additionally, subscribers are encouraged to use capital gain and loss harvesting techniques to further reduce tax exposure.

The model itself will be low activity. Annual rebalancing is encouraged.

The allocations below were selected to optimize return and minimize volatility. Subscribers are free to modify allocations to fit their needs.

Additionally, the Risk Management Indicators at Think 2 Retire are also applied to this model in an effort to provide additional volatility control and long-term growth. See the website's Risk Management Indicator and Video Library section for more details.

The allocation percentages mentioned in the example portfolio below are not those suggested in the current model allocation. They're for illustrative purposes only.

As always, the subscriber is welcome to deviate from the model's current allocation suggestions to meet their individual needs.