Income investing in IRA

[uncledrz]

I'm at a loss for new ideas, so I'll pose this question to the Forum to see what others are doing here. IMO tax advantaged investments should be place outside of tax deferred vehicles such as IRA's. So dividend stocks, MLP's, Canroys (special situation re foreign tax credit) shouldn't be in an IRA. Reits, bonds and bond funds fit well in an IRA. What other types of income producing investments are you putting in you IRA's?

 

[FinanceGeek]

I will only do automatic dividend re-investment in an IRA. Just too complicated to figure the cap gains taxes down the road otherwise.

 

[brewer12345]

Merfx.

 

[JohnEyles]

Merfx.

Brewer, could you say a little more about your general feeings
about MERFX ? I'm not sure why it's an answer to "income
investing in IRA" since yield shows as 0.66%.

 

[pedorrero]

I disagree about bonds or bond funds in an IRA (Traditional IRA at least). With original IRA, you defer all taxes until you pull out money. The old rule was things that might have large cap gains ... stocks, maybe zero-coupon bonds. Recent years, with the Roth and the maximum long-term capital gains rate of 15%, have probably diminished the allure of the "Traditional" IRA. It did make figuring your taxes pretty easy....no need to keep track of those silly buy and sell prices! Many people think that bonds or (espcially) bond funds are a loser's game, especially as a long term investment.

-- Pedorrero, parrot of printed pontiifcations

 

[brewer12345]

Brewer, could you say a little more about your general feeings
about MERFX ? I'm not sure why it's an answer to "income
investing in IRA" since yield shows as 0.66%.

This is a fund that produces most of its return as ST cap gains and interest income and it is relatively low volatility. So you want it to be in a tax sheltered account and over time it basically throws off a few percent over cash or bond type returns.