Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Deciding What Account to Hold Different Asset Classes
Old 10-17-2018, 11:14 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
Deciding What Account to Hold Different Asset Classes

I have 3 accounts, taxable, Trad IRA, and Roth from largest to smallest. I keep all the bonds I can in Trad IRA, but I also have some in taxable accounts just because that is where the money is. I have no earned income, so not adding to any account but taxable.

Some of my holdings produce income as capital gains. Timber REITs are this way. The ones I hold categorize all or almost all of their pretty generous payouts as LTCG, so I hold them only in a taxable account so I get full benefit from this.

Many other REITs categorize an amount that varies year to year as LTCG. Shopping center and many other equity REITs fit this mold. REIT payouts that do not get categorized as LTCG or other favored categories are mostly ordinary income, as they do not get the "qualified dividend" favored category that dividends from other corporations typically get.

I owned a lot of REITs in the 1990s, but lately only a few other than my timber REITs. I have now added some more, from various currently relatively cheap categories. These can be all over the map with regard to what portion of income if any is categorized as LTCG in a given tax year. I buy these in my Roth, or my taxable account. My trad IRA is all bonds and cash.

I figure in the ROTH at worst I am wasting highly favored investment space, but I will not have to pay ordinary income tax on capital gains payouts, since I pay no tax at all on payouts, or sales or withdrawals from the Roth.

I could likely rank REITs by doing a 10 year history of payout categories, and then assign them to taxable account or Roth depending on the average portion of LTCG paid by a given REIT. A lot of work, and I think no guarantee that there is much year to year similarity.

What I am looking for with this post is ideas of what other investors do with regard to this issue.

I should add that my overall debt:equity allocation is 50%.

Thanks, Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-17-2018, 12:52 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
Looks like this is not a hot topic for anyone!

I would welcome knowledge of any REITs that you know with advantaged payouts.

Going forward when I research a REIT that interests me, I'll pull their categorization of taxability of dividends over the past 5 years or so. Low work load, and I would be getting information that has a good chance of being relevant.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 10-17-2018, 01:12 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,264
I think you are on the right track... REITs that produce mostly LTCG in taxable and REITs that produce mostly ordinary income in tax deferred. No REITs here so I can't help much more.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
pb4uski is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Asset Classes smooch FIRE and Money 2 12-12-2005 06:31 PM
add other asset classes? just_hatched FIRE and Money 17 10-08-2005 10:24 PM
Total market index vs asset classes Roger_R FIRE and Money 5 06-12-2004 05:27 PM
Categorizing Asset Classes eytonxav FIRE and Money 12 02-23-2004 03:23 PM
Balancing when Asset Classes are across tax bounds Telly FIRE and Money 9 09-14-2003 06:55 PM

» Quick Links

 
All times are GMT -6. The time now is 02:07 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.