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Roth IRA is your best investment if you qualify. Once that is fully funded, second best is taxable investments with an eye toward minimizing income taxes. Long term buy and hold in stocks like Rule Makers is the best strategy, but tax managed mutual funds or even index funds are not bad.

Watching taxes is important because otherwise you can find yourself paying a large income tax bill on your retirement savings. This not only reduces your cash, it also slows down your rate of investment growth.

Stocks avoid this problem in that you pay taxes only on dividends or at capital gains rates when you sell. So choose ones that you can hold a long time and that are likely to grow.

Mutual funds can also do this for you, but managed funds often have large capital gains distributions each year that are taxable. Tax managed mutual funds avoid this problem. Index funds such as an S&P 400 Index fund usually have very low capital gains distributions compared to managed funds.

Best of luck to you.
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