Bill L: Too many too tough questions!
My ROTH is too small right now to consider individual REITs or stocks. I probably would ask my accountant or YOU guys what is appropriate for REITs or REIT mutual funds in a ROTH. I've purchased an equity-income mutual fund for my ROTH.
Well, if a person thinks he/she will keep a stock 10 years, I'd say that is maybe more important than whether it's in a tax-deferred account or not. Maybe though, if the time period is that long and the stock is that good, it should be held in both accounts. Finding and buying a really good stock at the right price for a 10 year holding is perhaps rare enough an occurrence, that when such an opportunity presents itself, one should perhaps overweight the purchase.
You are asking I think, what is the best tax strategy to employ with a long term -10 year - holding. I am responding by saying -- 10 years -ten-- how many times will you be challenged to sell some of that holding, to trim the position because it so overweights your portfolio, to take some profit because life is short, because your wife or family requirements -- these issues will IMO, influence you as much or more than the tax consequence. Thinking now of the Walmart or Microsoft millionaires--- I'm interested whether having funds in a deferred account kept them from getting their hands on the funds, so they just let it ride and accumulate; or having funds in taxable accounts, they just put it aside and forgot about it, or maybe peeled off small amounts every year. To me, being in the right spot at the right time and taking some sort of action - that was most important (certainly as I compare such accumulated wealth they achieved to my relatively puny taxable/deferred stock portfolios. -g-) Paul Senior |
