10-22-2013, 04:44 PM
(10-22-2013, 01:57 PM)hendi_alex Wrote: IMO high yield investments like REITs and BDCs that pay non qualified dividends or interest paying bonds are best held inside the IRA. Tax advantaged investments are best held in regular (non tax deferred) accounts. If a person only invests in DG stocks the point is irrelevant. And while the DG stocks get hit with a higher tax when funds are taken out of the tax deferred account, it is also true that the funds still have the advantage of much greater compounding while held in the account. So the higher tax at the end could mostly be a wash as compared to similar investments held in a regular account.
Exactly!