Message Font: Serif | Sans-Serif
No. of Recommendations: 1
I have several stock accounts:

• a Roth, 

• a 401k, 

• IRA which I funded with post-tax dollars, and 

• an account with no tax benefits (where extra money gets plunked)

With the lower tax rate structure, changes in law about dividends, I'm 
confused about what type of stock/investment is best to hold in 
each type of account. I've been thinking I should make myself up a 
little chart for each so when I rebalance I can be sure I'm buying 
the best type of investment for that account type. 
Like maybe with the new dividend taxing stucture, 
stocks which pay dividends are best put in the 
non-tax-benefitted-account (NTBA) instead of a roth.

I just looked around for something like that here in Fool, but didn't 
find anything. Can anyone offer enlightenment? I'd gladly post the 
chart when we've got some input. =)

I'm thinking something like this:

type of acct                 best type of investment


Roth                         high growth stocks

NTBA                         dividend paying stocks

401k                         index funds

And also, perhaps a chart where we identify the worst choices for 
each account type:

type of acct                 best type of investment


Roth                         index funds

NTBA                         high growth stocks

401k                         large caps

I understand that the ideal mix would change depending on how 
large each account is, and how close to retirement/needing the money 
one is. So how about we look at a scenario where a person is looking
 to retire in 5 years and has an amount in the NTBA equal to the 
combined totals of the tax-benefitted accounts. So if the
 NTBA equals 100k, the Roth has 20k, the IRA has 20k and the 401k 
has 60k.

TIA!  =) Jen
Print the post  


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.
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.