Quote:
Originally Posted by retiredguy123
I never purchased stocks in an IRA. I always had a balanced portfolio of stocks and bonds, with bonds inside the IRA and stocks outside of the IRA. That is because bonds generate interest income that is always taxed at your ordinary income tax rate, but stocks generate capital gains income that is taxed at a lower capital gains rate, but only if it is outside of an IRA. So, you get a better overall tax advantage by keeping the stock investments outside of the IRA. That assumes that you have enough investment assets to maintain an IRA and a non-IRA investment portfolio.
|
You give good advice. I just have not been into bonds for a long time — since not long after rolling over the tax deferred mutual funds from the employed days into self-directed IRAs……..
I have been interested in stocks for a long time, but never really dug into bonds much.
I used to use bond mutual funds. Probably should sometime again.
Boomer