Well, ocr, in a 401k it doesn’t matter. Because dividend returns won’t be taxed anyway. So in that case, a good strategy is just to enable automatic dividend investment imho..
Entry point however is key… I think entering this year is a bad idea…Well entering before fiscal cliff is resolved is a bad idea imho… Because until it’s resolved, markets are jittery..After it’s resolved, there may be even more of a panic sell…Better to buy on the way up then on the way down imho.
Talk a look at Phillip Morris. It’s crapping out..still….
Also, consumer staples has been pretty good to me for the past 3-4 years. I use etf XLP.. But I think the game is close to over on that one….So I’m out on that too as of last week.[/quote]
true, I was thinking more along the line of after retirement. since the withdrawals will at that time be counted as income, the rate it is taxed would still be less assuming retirement income is less than current income.
that is a good point though about the 401k earnings not being taxed currently, as the divident heavy stocks will still have plenty of appeal for the 401k investors.
