For those of us who live in California, which has a top income tax rate of 13.3%, it is possible to lose over 50% of your investment income to taxes. Fortunately, the negative impact of taxes on your financial plan can be reduced by carefully choosing which types of assets to hold in a retirement versus a non-retirement account. This concept is called “asset location”.

Read almost any article from a reputable source about how to obtain good financial advice and you will see the author recommend that you work with a fee-only financial planner. What exactly is a fee-only financial planner and how is that different from a fee-based financial planner?