Mike, You've gone and changed your name again? <G>
I don't believe in Roths for most people. My feeling is that by the time most folks retire, unless it is really soon, the Roth will be subject to an AMT or some other scamaroo they don't call income tax, which will make distributions close to fully taxable.
But, in general, you want to put anything with short term gains potential, which includes most options strategies, and taxable income into some sort of IRA or Roth. The Roth would be the preferred vehicle if it stays the way they say it is today, which, as I said earlier, I suspect won't happen.
Long term gains may as well go into a regular account, because the rates are low and you don't have to worry about them more than once.
In general, you want to max out an employer's contribution to your 401K. Even if the 401k has relatively crappy choices, the amount they kick in makes it worthwhile. I have one like that. I wouldn't put an extra penny in a crappy 401K beyond the match amount, unless I had a savings discipline problem. If you can't save money outside the 401K, then that automatic deduction from the paycheck makes sense. If you have a reasonable self-directed 401K, then max out your own contributions.
In the traditional IRA, I would probably put most taxable income strategies. Mutual funds that are not managed for taxes are also good choices here.
In the Roth, if I did it at all, I'd put long options and homerun potential, plus income plays. Since there are limits to both traditional and Roth, you may end up maxing out both.
All futures have to go in the regular account. And all losers. When you are going to take a bath on a security, put it in the taxable account. <VBG> Or, better yet, don't do it at all. |
