Hi I just realized I should start a Roth IRA acct.
I know that 5,500 is the maximum I can invest per year.
Do I invest in it the same way I would my cash acct?
Dividend growth companies?
little input would be great thanks !
Many people use their Roth IRA accounts to invest in things that have higher tax rates such as REITs and MLPs.
(03-10-2015, 06:37 AM)twil Wrote: [ -> ]Do I invest in it the same way I would my cash acct?
The #1 difference for myself is that I don't DRIP my cash account, but I absolutely do for my Roth. The reason is at only $5500 / yr in new additions it simply takes too long to accumulate enough cash to make a new purchase.
This guy has a very solid grasp of the concept of DGI + Roth:
http://www.dividendgrowthinvestor.com/search?q=roth
Thank you both for the replies, I'll read that article after work today.
Cheers
I use my ROTH just like my cash account. I DRIP it. Just one thing, don't buy any stocks that will have foreign tax withheld. Those taxes are lost forever unlike in a cash account where you can file for them as a credit to your taxes on your 1040.