No. of Recommendations: 0
my husband is thinks it is ok to aim for mutual funds that generate a lot of taxes since it won't affect us. He thinks that we should go for funds we think will generate the highest return regardless of the load, turnover, dividends, etc. Is this thinking right?

Turnover and dividends, ok, but not load. A load is a commission. You don't want to pay that. You also want to find funds with low "Expense Ratios."

Since this in an IRA, why not look into the Jaguar of fund companies and look at Vanguard? You can open a Vanguard IRA directly with the fund company or, if you wanted to own more than one Vanguard fund without the fees they charge at the company itself, you could open an IRA with Scottrade and buy Vanguard funds. (Scottrade is the only brokerage whcih doesn't charge a transaction fee for Vanguard Funds.) A good core fund to look at is VTSMX (Total Stock Market Index). This is a fund that is fine in either a taxable or tax-advantaged account. They also have some very good balanced funds, and small-cap and bond funds, which you would want to hold in a tax-advantaged account for the other reasons your husband cited.

What you really need to do is to figure out an Asset Allocation plan for yourself. It's hard for us to make any recommendations without knowing what your investment timeline is, your risk tolerance and such.

You might consider reading "Mutual Funds for Dummies" and/or "Personal Finance for Dummies." These two books were invaluable to me in getting started.

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Is there any advantage of opening it at one place versus another?

Yes. One word: Fees. I can't comment on the brokerages you've mentioned, but you need to learn and understand the fee structure of all of them before you make your decision. There are things like low-balance fees, closing fees (if you ever decide to leave), transaction fees....billions and billions of fees (in Carl Sagan's voice.)

Scottrade does not have these...Vanguard has low-balance fees.

Hope this helps.

Caat
Disclosure: I own a Roth at Scottrade with VTSMX and NAESX in it; a Roth at TIAA-CREF with TIINX and TIPBX in it, and I have my husband in a Roth at Vanguard with VTSMX in it.
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