The Bogleheads' Guide to Investing

The rule is simple: Place your most tax-inefficient funds into your tax-deferred accounts, then put what’s left into your taxable account. The following list provides different type assets in the approximate order of their tax-efficiency, from the least tax-efficient (at the top) to the most tax-efficient. High-yield bonds International bonds Taxable domestic bonds Inflation-protected securities (TIPS) Real estate investment trusts (REIT) Balanced funds Stock-trading accounts Small-value stocks Small-cap stocks Large-value stocks International stocks Large-growth stocks Most stock index funds Tax-managed funds EE and I bonds Tax-exempt (muni) bonds