--- title: "Asset Location vs. UMH: A More Scalable Path for RIAs" description: Explore asset location vs. UMH, the trade-offs of household implementation, and how GeoWealth helps RIAs retain account-level control as they scale. image: https://blog.geowealth.com/hubfs/Blog%20Graphics/banner-asset-location-umh.jpg --- [Go Back Up](https://blog.geowealth.com/asset-location-vs-umh-a-more-scalable-path-for-rias#top) [Skip to Content](https://blog.geowealth.com/asset-location-vs-umh-a-more-scalable-path-for-rias#body) [![2025-Trademarked-GeoWealth-Logo-White-Horizontal-300ppi-1-scaled](https://blog.geowealth.com/hs-fs/hubfs/Themes/2025-Trademarked-GeoWealth-Logo-White-Horizontal-300ppi-1-scaled.png?width=240&height=36&name=2025-Trademarked-GeoWealth-Logo-White-Horizontal-300ppi-1-scaled.png "2025-Trademarked-GeoWealth-Logo-White-Horizontal-300ppi-1-scaled")](https://geowealth.com/) Toggle Menu - [About](https://geowealth.com/about-us/) Toggle children for About Main Menu (Press to Return) \> About - [About Us](https://geowealth.com/about-us/) - [Meet The Team](https://geowealth.com/meet-the-geowealth-team/) - [News & Press](https://geowealth.com/news/) - [Who We Serve](https://geowealth.com/who-we-serve/) - [Partners](https://geowealth.com/partners/) - [Careers](https://geowealth.com/careers/) - [Advisor Technology](https://geowealth.com/advisor-technology/) - [Portfolio Solutions](https://geowealth.com/portfolio-solutions/) - [Services & Support](https://geowealth.com/services-and-support/) Toggle children for Services & Support Main Menu (Press to Return) \> Services & Support - [Services & Support](https://geowealth.com/services-and-support/) - [Advisor Training](https://geowealth.com/training-support-for-advisors/) - [Resources](https://geowealth.com/resources/) Toggle children for Resources Main Menu (Press to Return) \> Resources - [Insights](https://geowealth.com/resources/) - [Case Studies](https://geowealth.com/case-studies/) - [Blog](https://blog.geowealth.com) - [Contact](https://geowealth.com/contact-us/) Toggle children for Contact Main Menu (Press to Return) \> Contact - [Schedule a Demo](https://geowealth.com/schedule-a-demo) - [Request Pricing](https://geowealth.com/request-pricing-proposal/) - [Contact Us](https://geowealth.com/contact-us/) - [Schedule a Demo](https://cta-service-cms2.hubspot.com/web-interactives/public/v1/track/redirect?encryptedPayload=AVxigLICRhSn3LSjS4r1zuxBd4ewyvc6Aw9ROoSL%2Fi9R3CYXa3o6E1B4QHrf9ucM2PiOLN4knE9GfvlBYHutiezpOM7%2FR2pdbttZE4GKMYULGMVOdKPAcGnvTI%2BncZGaW9NAkB5jFgioMR74l8J5NCCpBWwzZcG6jLKLSNgcc8MXyEUfrVcA6CwKVvg%3D&webInteractiveContentId=123635498498&portalId=7742095) [Back to Blog](https://blog.geowealth.com) # Asset Location vs. UMH: A More Scalable Path for RIAs [Operations & Back Office](https://blog.geowealth.com/topic/operations-back-office) • Written by: Josh Hagar ![](https://blog.geowealth.com/hubfs/Blog%20Graphics/banner-asset-location-umh.jpg) Share article [mailto:?subject=Asset%20Location%20vs.%20UMH%3A%20A%20More%20Scalable%20Path%20for%20RIAs&body=https%3A%2F%2Fblog.geowealth.com%2Fasset-location-vs-umh-a-more-scalable-path-for-rias](mailto:?subject=Asset%20Location%20vs.%20UMH%3A%20A%20More%20Scalable%20Path%20for%20RIAs&body=https%3A%2F%2Fblog.geowealth.com%2Fasset-location-vs-umh-a-more-scalable-path-for-rias) ### Understanding an Asset Location framework relative to a Unified Managed Household (UMH) approach How does your household investment framework hold up when a client needs cash from taxable assets while a rollover arrives in an IRA? The allocation may look straightforward. The implementation rarely stays that way. At [GeoWealth](https://geowealth.com/), our approach is to coordinate the household through disciplined asset location, while retaining trading and rebalancing control within individual accounts. Understanding how that differs from Unified Managed Household (UMH) implementation can help you choose a repeatable process for your firm. ![asset-location-vs-umh](https://blog.geowealth.com/hs-fs/hubfs/Blog%20Graphics/asset-location-vs-umh.png?width=600&height=230&name=asset-location-vs-umh.png) ## Same household objective, different starting points Asset location and UMH can both pursue tax-aware household outcomes, but they organize implementation differently. In the UMH approach discussed here, you define one household model, then distribute its holdings across accounts according to tax status and other constraints. Its appeal is a unified allocation objective. Its operational challenge is dependency: activity in one account can require changes elsewhere to preserve that objective. Asset location starts with account-specific construction. You place models or sleeves where their tax characteristics and the client's needs suggest they belong, then assess the combined household exposure. This makes account-level responsibilities clearer, but still requires household monitoring and judgment when exposures drift. Research published in the [Journal of Financial Planning](https://www.financialplanningassociation.org/article/journal/NOV13-asset-location-decision-revisited-0) illustrates another important consideration: pre-tax and after-tax allocation frameworks can lead to different assessments of household risk. Account placement should support your allocation methodology, not substitute for it. | **Consideration** | **Account-based asset location** | **Top-down UMH implementation** | | --- | --- | --- | | Starting point | Assign models or sleeves to individual accounts. | Define a household model and distribute holdings. | | Primary appeal | Clear account roles and repeatable sleeve management. | One coordinated household allocation objective. | | Ongoing trade-off | Household drift still needs review and decisions. | Account-specific events can require cross-account adjustments. | ## The real test comes after implementation Cash flows expose the tension between account placement and household allocation. Consider a hypothetical $1 million household targeting 60% equities and 40% fixed income: - **Traditional IRA, $450,000:** $400,000 fixed income and $50,000 equity. - **Roth IRA, $150,000:** $150,000 equity. - **Taxable account, $400,000:** $400,000 tax-efficient equity. The household reaches its target through distinct account roles. This is an illustration, not a universal prescription: tax rates, liquidity needs, investment characteristics, and client circumstances can change appropriate placement. Now the client withdraws $80,000 from taxable equities and rolls $20,000 into the IRA. Before investing the rollover, the household holds $940,000: $520,000 equities, $400,000 fixed income, and $20,000 cash. The original 60/40 allocation has changed. Restoring the target requires decisions about where to buy equity and what to sell. Preserving the IRA's original role may conflict with precise household alignment. Asset location does not eliminate this trade-off; it gives you an account-specific structure for addressing it deliberately. *Disclosure: The hypothetical example presented in this article is intended for registered investment advisers and other financial professionals managing multi-account household structures. It is not intended for retail investors and may not be relevant to all advisory firm types or client situations. The UMH method may be preferable for certain advisory firm structures.* ## GeoWealth's Approach: Sleeve-Level Implementation GeoWealth's preference for account-level implementation comes from operating experience. We initially supported a top-down, UMH-style design and moved away from it after encountering challenges with scalability, control, and portfolio consistency. Our [portfolio solutions](https://geowealth.com/portfolio-solutions/) enable firms to combine models and determine their allocations within individual accounts. GeoWealth trades and rebalances the underlying portfolios or sleeves, rather than treating every household account as one directly rebalanced portfolio. This is where the UMA distinction matters. Our [Unified Managed Account capabilities](https://geowealth.com/public-private-model-capabilities/) support multiple sleeves within a single account. UMA capability does not mean UMH-style household rebalancing. You can determine where subsequent inflows are invested and where outflows are extracted. Through our [advisor technology](https://geowealth.com/advisor-technology/), you can also review households, accounts, and portfolio sleeves. Household visibility and account-level execution serve different, complementary purposes. GeoWealth's [tax tools](https://geowealth.com/tax-tools-overview/) support additional tax-aware workflows, subject to eligibility and ongoing advisor oversight. Household tax coordination should not be confused with distributing and rebalancing one household model across accounts. ## Choose a process you can maintain GeoWealth's approach involves disciplined asset location supported by sleeve-level execution and regular household review. Establish account roles, define how cash flows should be handled, and decide when allocation drift warrants intervention. When evaluating a framework, ask what happens after a withdrawal, rollover, or restriction. Who makes the adjustment? Which objective takes priority when tax considerations and allocation precision conflict? How repeatable is that decision across your book? Account-level sleeves provide repeatable building blocks across your book. They help preserve each model's investment process without requiring every related account to move together. That is why we see asset location as a more scalable implementation approach, while still recognizing its need for oversight. Explore the broader [operational challenges facing RIAs](https://blog.geowealth.com/exploring-common-advisor-challenges) as you assess your process. Our discussion of [portfolio rebalancing](https://blog.geowealth.com/rebalancing) provides additional context for defining a consistent review discipline. [Schedule a demo](https://geowealth.com/schedule-a-demo/) for a one-on-one conversation with our sales team. Bring a household scenario, your models, and your cash-flow requirements. We'll discuss how GeoWealth's technology and services can support your firm's implementation approach.   ###### Disclosure: *This material is for informational and educational purposes only and does not constitute investment, tax, or legal advice. Examples are hypothetical and illustrative, not recommendations for any client. Asset location does not guarantee tax savings or investment results.* *GeoWealth's tax tools do not constitute tax advice and are subject to eligibility and other requirements. Advisors remain responsible for client-specific suitability, fiduciary obligations, and ongoing oversight. Clients should consult a qualified tax professional.* *Investments are not guaranteed and are subject to investment risk, including possible loss of the principal amount invested. Past performance is no guarantee of future results.* *The UMH method may be preferable for certain advisory firm structures.* ### See GeoWealth's Turnkey Asset Management Platform in action. Schedule a one-on-one consultation with our team. [Request Demo](https://geowealth.com/schedule-a-demo/) ![](https://blog.geowealth.com/hubfs/Headshots/headshot-josh-hagar-square-rounded.png) [mailto:connect@geowealth.com](mailto:connect@geowealth.com) ###### Josh Hagar SVP, Enterprise & Partnerships at GeoWealth You May Like These ## Related Articles ![](https://blog.geowealth.com/hs-fs/hubfs/Blog%20Graphics/2025%20Blog%20Header%20Images/Blog%20Email%20Header%20Images+7.png?width=700&name=Blog%20Email%20Header%20Images+7.png) ### [The Evolution of RIA Operations](https://blog.geowealth.com/from-the-desk-of-the-coo-part-4) ![](https://blog.geowealth.com/hs-fs/hubfs/Blog%20Graphics/2025%20Blog%20Header%20Images/Blog%20Email%20Header%20Images+9.png?width=700&name=Blog%20Email%20Header%20Images+9.png) ### [The Power of Sleeving](https://blog.geowealth.com/from-the-desk-of-the-coo-part-6) ![](https://blog.geowealth.com/hs-fs/hubfs/Blog%20Graphics/2025%20Blog%20Header%20Images/Blog%20Email%20Header%20Images+3.png?width=700&name=Blog%20Email%20Header%20Images+3.png) ### [3 Operational Risk Factors Creating Liabilities for RIAs](https://blog.geowealth.com/from-the-desk-of-the-coo-part-3) Get Powered by GeoWealth. 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