Stock Investment: Benefits of Tax Sheltered Account

Started by Lasisi David, May 10, 2011, 10:04 PM

Lasisi David

When you put stocks in your tax sheltered account,you get the benefit of delaying taxes,but you pay a price. You convert low-taxed capital gains into highly taxed ordinary income.

The smarter course of action is to do most of your stock investing in your taxable account and save the tax shelter for things that pay a lot of ordinary income, corporate bond, real estate investment trusts.

Or what do you think?