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Old 01-21-2005, 12:54 PM
parttimepro parttimepro is offline
Senior Member
Join Date: Dec 2004
Posts: 227
Default Re: Roth IRA Strategy

Well, you want to put whatever investments will generate the most tax in your IRA. Currently, most dividends and long-term capital gains are taxed at a fairly low 15% rate. REIT dividends do not qualify for this special rate, so you should put those in the IRA. Short-term capital gains (from stocks held less than 1 year) are also taxed at a higher rate, so if you're going to do short-term speculating, that should be done in the IRA. A lot of actively managed mutual funds generate a lot of short-term capital gains, so if you like those (and you shouldn't), they should also be in the IRA.
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