Sub-portfolio Linked versus Not / Taxation

[sbfree]

Good morning:
I would like to group taxable and tax-deferred accounts into separate portfolios. In the tutorial (Fund Manager Sub-Portfolio Tutorial), it appears that you do this two ways, one by creating sub-portfolios as daughters of "All Accounts" and a second method by creating a daughter of the Master Portfolio called "By Type" and then an additional daughters "Regular" and "Retirement". Each of these levels contain linked accounts. I do not understand why one method is preferable or different other except for the use of linked portfolios and how they are nested in the Master record.

Would you be able to expand on how these methods are different and why one might be preferable to the other?
Thanks,
Scott

[Mark]

Hi Scott,

Sure. In the case of creating another layer of hierarchy below "All Account" this works fine in the case of taxable/tax-free since all of your accounts would go in one or the other. In cases where this isn't true, it can be useful to use link subs in completely separate sub-portfolios. In this case, there are 2 different ways to accomplish the same thing, and they both would work equally as well.

[sbfree]

Thanks for the clarification!
scott