Choosing between taxable and tax-deferred/tax-free accounts

One of the many considerations I have when I make an investment choice is the decision of running that investment through my taxable brokerage account or through my IRA. Of course, there’s only so much money that goes into the IRA each year, but if I have money for an investment this question becomes relevant.

Investor Place has an interesting article on the types of investments to hold in an IRA. It’s an interesting read. Here’s an excerpt:

“Whether you want him to be or not, Uncle Sam is one of your most important partners in your retirement planning. The taxes you pay have a major impact on your effective returns … and in some cases might make the difference between retiring comfortably or just barely getting by. That’s why it pays to know what investments should go in different retirement vehicles, such as a 401k, IRA or Roth IRA.

Not all investment gains are taxed equally. Some are taxed at preferential rates — or allowed to defer taxes indefinitely — while others will cost you so much of your current income, you might mistake them for a vindictive ex-wife”.

Here’s a link to the full article: