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To: J. W. Schneider who wrote (317)7/14/1998 8:36:00 PM
From: Jim Battaglia  Respond to of 366
 
JW...Good advice!!! For those interested in more info on determining tax efficiency check out this site:

troweprice.com

Have a great day!!

Jim
investnbest.netmegs.com



To: J. W. Schneider who wrote (317)7/19/1998 5:27:00 PM
From: Terrapin  Respond to of 366
 
Tax efficiency is a relevant topic for me right now. I am setting up a Roth IRA to work with the non-IRA account with which I've been doing all of my investing. Please let me know if this sounds right:

As I understand it tax efficiency is measured by the amount of distributions paid out over the year. These distributions are taxable in normal accounts and tax-deferred in traditional IRA's so, therefore, this should be a criteria to avoid in fund selection.

However, for the Roth IRA all distributions are tax free if you follow the rules. Therefore it does not need to be considered and the focus can be more on return.

Having said all that does any body have any good selections with regards to tax efficiency?

Thanks,
John