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Strategies & Market Trends : Dividend Investing -- Ignore unavailable to you. Want to Upgrade?


To: Paul Senior who wrote (32)2/10/1999 9:02:00 PM
From: Bill J. Landis  Read Replies (1) | Respond to of 387
 
Paul Senior Wrote:


1. With REITs, part of the dividend is return of capital. If you have it in IRA, you'll
pay taxes on such when/if you withdraw such funds. But of course, you won't pay
any taxes if it were in the taxable account (i.e. no taxes on the return of capital
amounts.)

2. Sir! Do you know how hard it is to keep a growth stock for ten years??? Tons of
people can't even keep a spouse for 10 years, let alone a stock. Putting growth
component in IRA lets you switch from a growth stock that becomes overvalued, to a better growth prospect. Can do it anytime without having to worry about paying taxes.



Would you change #1 above at all for a Roth vs Regular IRA (i.e. tax free rather than deferred)?

Also, if one thinks s/he can/will keep a stock for 10+ years (i know, probably wishfull thinking, but who knows ;), would that possibly make you reconsider?

Finally, any comment on mutual funds vs individual stocks? No particular reason for me to ask I guess, just looking for whatever comments come out, and hoping to get a little action on this thread :).

Thanks for the great input!!



To: Paul Senior who wrote (32)2/11/1999 5:10:00 AM
From: Mama Bear  Read Replies (1) | Respond to of 387
 
With REITs, part of the dividend is return of capital. If you have it in IRA, you'll pay taxes on such when/if you withdraw such funds.

Of course you got to deduct the capital when you put it into the IRA, so it's not like you're paying extra. The capital you put into your taxable account that is returned and not taxed was after tax income.

Barb