Saturday, February 25, 2012

Thoughts on Investing from Forbes


#4 Taxes are a Key Investing Strategy

With Market experts predicting equity returns will average just 6% per year, taxes will make a huge difference in what counts most-your after-tax return.
Place assets strategically.

Keep taxable bonds and high turnover funds producing highly taxed short-term capital gains in the tax-deferred retirement accounts.

Hold individual stocks in taxable accounts to take advantage of the low long term gains rate and tax-loss harvesting.

Hedge against higher rates by converting some of your traditional IRA to a Roth IRA. And check out a tax-saving technique that allows you to cherry pick which parts of your portfolio you want in a Roth based on market performance after conversion.


Steve Cook received his education in investments from Harvard, where he earned an MBA, New York University, where he did post graduate work in economics and financial analysis and the CFA Institute, where he earned the Chartered Financial Analysts designation in 1973. His 40 years of investment experience includes institutional portfolio management at Scudder, Stevens and Clark and Bear Stearns. Steve's goal at Strategic Stock Investments is to help other investors build wealth and benefit from the investing lessons he learned the hard way.