Hello,I am pasting from a recent article from MF retirement expert Robert Brokamp. It was about ways to keep Uncle Sam's hands off your retirement savings:"2. Choose capital gains over ordinary income.Taxes that are deferred must eventually be paid. In the case of a traditional IRA or 401(k), the withdrawals are taxed as ordinary income -- the highest rate possible. Investors closer to retirement should consider keeping some of their money out of tax-deferred accounts and choosing tax-efficient mutual funds or low- or no-dividend stocks such as Google (Nasdaq: GOOG) or Dell (Nasdaq: DELL). Once you sell those investments, you'll pay long-term capital gains, which nowadays are taxed at rates of 5% or 15%, compared to the maximum 35% income tax rate. 3. Choose dividends over ordinary income.If you are retired, do the opposite of what I just said -- at least in terms of dividend-paying stocks. In your situation, you want your higher-yielding stocks -- such as Citigroup (NYSE: C), Altria (NYSE: MO), or even Johnson & Johnson (NYSE: JNJ) -- outside of your retirement accounts. Why? Because you'll be living off those dividends, which are also taxed at rates of 5% or 15%. If those stocks are held in a traditional IRA, however, the dividends will be taxed as ordinary income when they come out."My question: I am about 20 years away from retirement, max out my employer's 457 deferred compensation plan and a Roth account and have some money to invest in a taxable account. I want to invest some portion of my money in dividend paying stocks (think MF Income Investor newsletter). Can you give me your opinions please, should my dividend stocks be in my Roth or in my taxable account? The points 2 and 3 above from Brokamp's article are a bit confusing. When I retire I will probably be in the same tax bracket as now, and I am a buy and hold type of investor.I would appreciate your input and suggestions on the matter.PavlosGR
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