No. of Recommendations: 0
Yes, I was thinking of mutual funds. Vanguard and others offer mutual funds that are specifically designed to avoid big capital gains distributions. In addition, index funds are usually very good in this regard. Much of the capital gains comes from managed funds buying and selling stocks. Index funds need not do much trading. They simply buy the stocks that mimick the index and hold them.

Tax considerations are important. If you get into a major investment program without considering those effects, you will soon find yourself with sizable tax bills. Some mutual funds incurr sizable capital gains distributions even when the NAV of the shares is declining. Its something to watch out for.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement