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Author: ripley Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Re: IRA / non-IRA allocation Date: 3/23/1998 2:36 PM
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Thanks for the input. I'm with you on the following general points:

1) Dividend and short-term capital gains producing investments are better off in a tax-deferred account
2) Long-term capital gains producing investments are better off in the taxable account

But it gets more interesting. I'm already six months into a cycle with Fool 4 stocks in my taxable account, along with our good friend AMZN, shares of the (small-cap) company I work for, as well as an overseas fund. Along comes this check made out to my broker "For Benefit Of" me to my rollover account. I'm comfortable investing about a third of this into Fool 4, with the remaining going to S&P Deposit Receipts until I find something better to do with it. [Note - this will NOT be into that wonderful index-beating aggressive growth fund that is closed now but will open its doors for one day and one day only this April so hurry one and all - brrrr. How do these people find me?]

What to do with the existing F4 (in my taxable account) in the meantime? There are some small caps as well as Cash King type investments I'd like to make, but the $$ is already working in F4. Do I sell off six months into the F4 cycle and take the small (taxable) gain so that I can reinvest in these others? Do I invest some of the IRA money in these Cash Kings and small caps even though it may not be optimal placement? Do I just hang loose with the taxable and let the Fool 4 run its course before investing elsewhere?

In short, how do I handle the inevitable short-term mis-allocation of investments when rolling over into a self-directed retirement account?

Decisions, decisions.

Folks, I'm not looking for answers here. What I'm after are your experiences and your thoughts on the subject. That's what would be the most help to me in making my own decisions. Two things for certain:

1) I'm not about to get rushed into anything
2) I will not abdicate responsibility for my own investments

[So no closed funds that open their hallowed doors for one day and one day only! ;-) ]

That said, thanks for your help so far and thanks in advance for your help in the future.

Regards,

Mills
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