I currently have both Stocks and Mutual Funds.... Funds in D&C and also, in my 401k.
I currently do not use the D&C or Stocks for income.
And I know that Bernstein favors mutual funds over stocks...less risk if diversified properly. Small investors have a difficult time diversifying with small stock accounts.
But, I still wonder if I should keep the stocks, or should I sell and move that money into the D&C accounts.
One thing I don't particularly like about mutual funds, is that every year I have to pay taxes on reinvested dividends and capital appreciation... money that I don't ever see or use. But with the stock account, I only have to pay taxes on the dividends received. Right now, those dividends are reinvested in more stock or CDs. On the other hand, the D&C funds are excellent rated funds with
low fees (Balanced and Stock funds to be specific).
Would anyone tell me their "philosophy" about this issue ?
Thanks,
Ray
I currently do not use the D&C or Stocks for income.
And I know that Bernstein favors mutual funds over stocks...less risk if diversified properly. Small investors have a difficult time diversifying with small stock accounts.
But, I still wonder if I should keep the stocks, or should I sell and move that money into the D&C accounts.
One thing I don't particularly like about mutual funds, is that every year I have to pay taxes on reinvested dividends and capital appreciation... money that I don't ever see or use. But with the stock account, I only have to pay taxes on the dividends received. Right now, those dividends are reinvested in more stock or CDs. On the other hand, the D&C funds are excellent rated funds with
low fees (Balanced and Stock funds to be specific).
Would anyone tell me their "philosophy" about this issue ?
Thanks,
Ray