Probably one of the smartest investment decisions I made several years ago was opening a Roth IRA. Sadly, this wasn't my first Roth IRA I had opened. I previously opened one with a different online broker than I use now. Armed with a valuable learning experience and a focused dividend re-investment (DRIP) strategy, my 2nd go around with a Roth IRA has been (and will be) much more successful.
Some people will argue that a problem with the DRIP strategy in a regular account is paying taxes on income that they don't have since that income was used to buy more shares. A great way to avoid this tax problem is taking advantage of a Roth IRA. When you hold dividend paying stocks in your Roth IRA you NEVER have to pay taxes on those reinvested dividends.
Source: Seeking Alpha
Related Articles:
- Are Defense Stocks Good Defensive Stocks?
- All Investing Involves Risk
- Is Now The Right Time To Start Investing?
- News of the U.S.'s Demise May Be Premature
- Dividend Investing in a Bear Market
Dividend Stocks For A Tax Free Retirement
Posted by D4L | Thursday, October 20, 2011 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.