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re: Dividend stocks and DRIPs as a long term investment vehicle

Posted on 6/24/13 at 9:56 am to
Posted by jimbeam
University of LSU
Member since Oct 2011
75703 posts
Posted on 6/24/13 at 9:56 am to
quote:

Another big "growth" holding of mine is VSEQX
Was just looking at this. The only thing that worries me is people say the whole past performance doesn't indicate the future. that fund has done well over 1,5,10,life. I like the fact that it is a mid cap and i'm young with more room for loss.

Also it has high turnover. won't that lead to gains tax? but will it even matter in a roth?
Posted by Ace Midnight
Between sanity and madness
Member since Dec 2006
89807 posts
Posted on 6/24/13 at 10:00 am to
quote:

Also it has high turnover. won't that lead to gains tax? but will it even matter in a roth?


As long as you follow the rules, you don't pay taxes on Roth growth or earnings. That's the deal.
Posted by Volvagia
Fort Worth
Member since Mar 2006
51958 posts
Posted on 6/24/13 at 10:08 am to
quote:

Also it has high turnover. won't that lead to gains tax? but will it even matter in a roth?


Once the money is in a Roth, and you don't take out more than contributions, you'll never pay another penny on taxes* on that money, no matter what you do with it within that Roth or how much the fund turnsover.


*Unless Congress ever pulls a Greece.
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