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As you become more experienced with investing, and as your funds become somewhat larger, you may very well want to switch from an S&P Index fund to other stocks. Foolish Four is certainly an excellent portfolio. Long term buy and hold is probably the better strategy long term--especially for a taxable investment.

Yes, Foolish Four involves annual adjustments in your holdings and these transactions can incur capital gains taxes. Therefore, FF is best in a tax protected vehicle such as a Roth IRA. S&P Index funds are relatively more tax efficient, so between the two, it would be better in a taxable account.

Of course in the end, your Roth will incur no taxes, while the others will at least incur capital gains. So the account with the greatest value at retirement could be the one you most want to be in the Roth. It depends. You will have to decide for yourself in your case with your expected rates of return.

Best of luck to you.
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