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To: K. M. Strickler who wrote (36412)4/2/1998 10:14:00 PM
From: Chuzzlewit  Read Replies (1) | Respond to of 176387
 
K.M. The difference would obviously disappear -- the point behind the analysis was to show the tremendous effect taxes have on the wisest choice of an investment strategy. The expenses involved in trading will obviously still favor a buy and hold strategy, but it will vary with the brokerage rates and frequency of trading etc.

But your question raises an interesting side issue. Vehicles like IRAs and Keoughs were invented for the purpose of creating a safe retirement fund. But when you think about it, they don't meet that desire because they are the ideal vehicle for active trading, whereas a non-tax-deferred situation is more conducive to buy and hold.

Regards,

Paul