Nah. Why? So I can pay 10% and then taxes on top on what I pull out? And have my money locked away? I also don't trust that the gov't will let IRAs continue to grow tax free as they are now. They can change the rules at any point, and they'll need to to plug these deficits they're running. We'll probably lose the dividend rate too I imagine at some point.
So who knows. I actually have some in IRA and some not so I get the upsides (and downsides) of both I suppose.
One thing we can agree on I'm sure: taxes suck. ;)
That's right. If you get all of your $ back that you originally put in, that means your cost basis is now $0. So whatever you make selling the stock is the capital gain, because that is your proceeds and your cost basis is $0. Proceeds of sale - $0 = Proceeds of sale.
I guess I should have clarified that I meant the div. Of course if you sell you will have to pay on any gains. Since the thought of selling never enters my mind or plans, I generally don't think about it.
So yes the original point is right, in an IRA you don't have to worry about any taxes ever. (At least until the feds realize they ballooning deficit and pass legislation to retro-tax IRAs --- don't think it can't happen!)
The point I was trying to make though is if I never sell, and I accumulate enough shares that I could retire well before the legal age of tapping an IRA, why would I want all my shares locked away in an IRA? So the IRA does take away some flexibility IMHO. And I'm willing to never sell, so therefore why not have it in a taxable account assuming most divs are of a ROC nature.
capital gains is part of investing...too many of us have sustained capital loss from the chacainary (sp) perpetrated upon us by Wall Street criminals this past year...hope we can all be so fortunate as to have such a "problem" as capital gains...glta
fuzz...I agree who gives a flying Ph_....I got some in the IRA some out of the IRA spread across several ING CE Funds...these jokers just sew 'F.U.D' across all MB's and don't even own a single share..pretty pathetic really...Yeppers, we got lots and lots of divies comin' in bashers...jump in the pool and prosper...lmmfao, where were all these @-H%les when the NAV was below pps last Q408...?...hahaha, none of them were screaming "buy"...hilarious and pathetic at the same time...glta!
It seems every CEF has a yoyo that brings this up over and over again. You can draw no conclusions from those distribution percentages. Here's what the fund does:
* Invests in 65–90 global, common stocks with a history of attractive dividend yields.
* Sells call options on selected portfolio securities to potentially enhance returns.
* Buys out of the money put options on selected indices on a portion of the portfolio value to partially protect portfolio value from significant market declines.
Do you really think you are going to get a 15% distribution from just dividends? DUH!!! Wake up or go over to Alpine. IGD is playing in the option markets and all of that comes back as RoC. Now, is it possible that "some" of the distribution is really our capital? Absolutely, but you won't know that until year-end. And it's also possible that all of it is option strategy and none of it is our capital. Do some DD, it's not that hard .... or stay with Cramer.