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Originally Posted by clifp
The short answer to your question is in general, you want your higher tax assets in your IRAs and your lower taxed assets in your taxable accounts.
This means that your IRA should have bonds, CDs, REITs, and actively managed mutual funds with a high turn over. Index funds, and individual growth stocks in your taxable account. Dividend stocks are fine in either.
You certainly should count your land as part of your investments, and I would lighten up on an REITs to compensate for it. Also if you sell it would be an excellent source of money to use to buy an index fund. Now while I am a big fan of individual stocks 80% of your assets seems excessive, am I correct that you have virtually no mutual funds or ETFs? . I'd start selling the individual security in my IRA first, along with tax harvesting any losers you may have in your taxable accounts.
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Becareful as you get towards retirement with these low turnover tax efficiant funds in your taxable account. when liquidated or re-balanced you can be hit with a whopper of a tax bill and if your border line getting your ss taxed that can do it. at this point most of my taxable acount is of the regular pay as you go type , spinning off some taxable distributions yearly.
even though the last few years some of my funds have had fairly large capital gains distributions id still owe quite a bit of taxes if i sold to change funds and i have been paying a good chunk all along.
i can only imagine the whopper of a tax bill if i wasnt gradually paying thru the years at this point.
im no fan of paying any tax i can delay thru life but if it causes your ss to be taxed you really get burned or as happened to us the capital gains pushed us not only into loosing our amt deduction but we lost the deduction for my wifes college because it thru us over the limit income wise..
alot of times conventional advice sounds great until it applys to you. ha ha
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