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Author: TMFDj Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5069  
Subject: Re: Tax managed accounts Date: 11/14/2006 9:38 AM
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Has anyone found some good ones? I am thinking some spyders to start out.. but also am concerned about keeping track of original purchase prices. Scottrade does not send me any paperwork on my tax sheltered accounts, so I am thinking of going with another brokerage.

The difference between tax-privileged and non-retirement investing is you are relieved from contribution and withdrawal rules, and you don't turn captial gains and dividend income into ordinary income. There is wide agreement among the pros that the preferred strategy is to max your 401(k), max your IRA (including a spousal IRA if eligible), and then to save for long-term financial goals in non-retirement accounts.

I urge investors to treat their investment portfolios as a total portfolio, rather than a collection of mini-portfolios. For example, if the only decent investment in your 401(k)/403(b) plan is an S&P 500 index fund, then invest in that index fund there, and invest in other asset classes or sectors elsewhere.

Your desire to invest with a different brokerage is based on incorrect information. Brokerages comply with different rules for retirement and non-retirement accounts. Before you turn your desire into a decision, I urge you to call Scottrades customer service department and allow one of their reps to explain the reporting rules they will follow for non-retirement accounts.

David Jacobs
TMFDj
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