others might not agree...but...I put the dividend reinvestment stuff in the tax-sheltered account and the growth stocks/funds in the taxable account for three reasons:
1) the dividend reinvest stuff is generally lower risk and you're not putting your retirement money at risk this way
2) the accounting on dividends is a huge headache, it's a lot easier at tax time to ignore the stuff in the IRA
3) if the growth stocks/funds are dogs, you can sell up to $3000 and use it as write-offs in the taxable account against winners or earned incomes.
Strategy? Well, I'd like to hear others..I just love closed-end funds..
My IRA is loaded with closed-end funds that produce monthly dividends, schwab doesn't charge to reinvest them. My own preference is for utility stocks, reits and brokerage stocks, corporate bonds and junk bonds...the discount/premium to NAV and market volatility is taken out over a long holding period. So I own DUC, DNP, RFI, FMI...DSI is another good candidate. AMO, GAM, GGT, GAB and SBF are interesting funds to look at if you want an aggressive growth fund, I think they all throw out dividends. Most do 8% quarterly, in a down market the 8% is return of capital which is OK for a long-term holder. |
