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"So, what are the "right investments?"

Sorry to have left that part out, mizl.

You can pick any investment that you can hold long term, that doesn't pay large taxable distributions. A tax managed mutual fund is the classical example. An S&P 500 Index fund is quite good. The composition is stable and doesn't change often. Hence, annual capital gains distributions tend to be small. Usually you get dividend distributions that get taxed at the new low dividend rate.

You can also choose hot growth stocks. They work fine because they tend to pay low dividends and most of the gain appears in the stock price. Of course, such stocks can be volatile, and that causes you some problems. If you are forced to sell, then you must pay capital gains. Imagine how many hesitated to sell their tech stocks when the market started to crash. It can cause ulcers. That's why broad based stock funds work better, unless you are comfortable with the risks of individual stocks.

Even blue chip stocks will work. But they tend to pay larger dividends and grow less in capital gains. That can be OK with the new low tax rate for dividends. Just plan ahead. Select investments that fit your style and your needs.
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