The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Best Investment Strategy--PLEASE HELP||Date: 6/1/2000 4:21 AM|
|Author: huskyItalian||Number: 36158 of 119634|
I am not eligible for an IRA account, since Im currently unemployed. But recently I was fortunate enough to get some money to invest (about $10,000). I invested in a regular (non tax deferred) Schwab Discount Broker account.
But this means I will have to pay capital gains taxes EACH YEAR when I re-buy my new "foolish four" stocks. I know this will hurt the power of compounding. Given this fact, would it be better for me to re-evaluate
my "foolish four" stocks every 2 years, instead of every one year (which would minimize the how often I would pay capital gaines taxes and improve the power of compounding)?
Or should I just eliminate the "foolish four" strategy all together and invest long term in a good Index fund, where I could "buy and hold" for a long time?
If relevent, since I have very little income, I am in the lowest tax bracket (I think it's 15%).
Any advise would be greatly appreciated!!
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