What securities should I hold in a taxable investment account?

Question

I just opened a brokerage account and am wondering what I should buy - individual stocks, ETFs or mutual funds? Individual bonds or bond funds? What is the best for a taxable (not IRA) account?

Answer 1

It depends on your personal financial position. No one can give a credible answer to that question unless they know what assets you own, what your liabilities are & what your commitments are. It is also important to understand your tax position, which varies from State to State.

The only suggestion I can make is to go and see a Financial Advisor. In general terms they will tell you to make maximum possible use of your tax free allowance, and put those assets on which you would pay the most tax in the tax free accounts. The remainder goes in taxable accounts, and a Financial Advisor will be able to help you decide whether they should be stocks, ETFs, bonds or mutual funds.

Answer 2

There is no good answer to that. The best choices are the ones that will make you the most money, and if we could provide you with those ones, we'd all be buying them and getting rich.

I have a mixture of all of the above in my portfolio
40% individual stocks (mainly biotech)
30% mutual funds
15% bonds
10% ETFs
5% cash

Answer 3

that's tremendous. preserving ETFs is not any worse than preserving inventory. they're taxed in addition, a minimum of interior the couple of minutes period. What you would evaluate is preserving LEAPS on ETFs instead. those are taxed at 60/40. the biggest ingredient is to pick the right ones! even if you've Japan or Germany, or the Russel or Nasdaq, or sectors which include retail/technologies, you merely opt to be confident to have the right blend on your portfolio. preserving on to ability/oil holders/ETFs will make the tax concern moot if it merely loses you money, precise? desire that permits!