Why Stocks Are Best Held in a Roth IRA
by Eileen Ambrose, Senior Editor, Kiplinger's Personal Finance
Aug 29, 2019
2 minutes
[QUESTION]I've heard that stocks should be held in a Roth IRA and bonds should be held in a traditional IRA. But for tax-efficiency, shouldn't cash-generating assets be held in the Roth and index funds in the other IRA?
[ANSWER]Given the tax characteristics of the two types of IRAs, it's generally better.
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