AAII Cleveland Ohio Chapter

Recently the topic of "asset location" came up.  In particular about value of growing assets inside an IRA (not Roth) vs in a taxable account when trying to accumulate wealth for heirs.  What are your thoughts about building IRA assets which will be taxed within 10 years of their inheritance vs Buy and Hold in ETF's which will qualify for stepped up basis when the assets are inherited.  

Does anyone have thoughts about this?

The overall thought would be to have a diversity of asset locations and asset types to deal with your situation now and into the future for heirs.  Like an oxygen mask on an airplane, first take care of yourself and your retirement as I don't know of lenders who make retirement loans without collateral that consists of your own money.  So first and foremost, consider IRA assets as for the Individual who will be retiring.  If those needs are taken care of with allowances for high inflation in the future, having some assets for others in ETFs would be tax efficient and have the step up in basis as you note.  Having a variety of assets with a variety of "tax stamps" where the government treats them for tax purposes, differently, is good as (I'm watching the news now) Congress can be unpredictable.  Great question.