08-11-2013, 02:07 PM
You are the first person who has ever said not to invest in REIT's in a retirement account. I know MLP's are not good because of UBIT, but isn't a tax advantaged IRA the perfect place to put REIT's since distributions are considered income rather than dividends?
My reason for investing in higher yielding stocks with this portfolio is because I won't be contributing any additional capital to the account. I plan to pool the dividends and invest them into either existing holdings or to begin new positions. A higher initial yield on the new positions allows me to do that more quickly.
I currently hold TGT, WAG, PM, LO in my 401K account and am debating on whether to buy any duplicate stocks for this portfolio. I'm now leaning towards investing in only new stocks with this account.
I understand some investors wanting to concentrate on their core holdings and eschew having a large number of stocks for diversification, but I prefer to spread the risk and cast a wide net. I don't believe in rebalancing much at all once the portfolio is going so I will let my winners run, but I prefer having my risk spread out a bit.
I've considered PG a time or two but went with CLX and CHD in my 401k account instead. Its definitely on the watch list though if it ever pulls back and gives me an entry point. Both CLX and CHD have better 20 year returns and dividend growth rates than PG so I went with them at the time.
My account was completed at the end of the day Friday, so I will probably make my move early next week. Still doing some more research today to finalize my list.
I appreciate your comments, you've given me a few more things to ponder.
My reason for investing in higher yielding stocks with this portfolio is because I won't be contributing any additional capital to the account. I plan to pool the dividends and invest them into either existing holdings or to begin new positions. A higher initial yield on the new positions allows me to do that more quickly.
I currently hold TGT, WAG, PM, LO in my 401K account and am debating on whether to buy any duplicate stocks for this portfolio. I'm now leaning towards investing in only new stocks with this account.
I understand some investors wanting to concentrate on their core holdings and eschew having a large number of stocks for diversification, but I prefer to spread the risk and cast a wide net. I don't believe in rebalancing much at all once the portfolio is going so I will let my winners run, but I prefer having my risk spread out a bit.
I've considered PG a time or two but went with CLX and CHD in my 401k account instead. Its definitely on the watch list though if it ever pulls back and gives me an entry point. Both CLX and CHD have better 20 year returns and dividend growth rates than PG so I went with them at the time.
My account was completed at the end of the day Friday, so I will probably make my move early next week. Still doing some more research today to finalize my list.
I appreciate your comments, you've given me a few more things to ponder.