PFFD - How I'm Building A Tax-Free Portfolio With 8% Yields And Double-Digit Total Returns
- CEFs continue to provide an advantage over most open-end and passive options in the fixed income category. If placed into a ROTH IRA, then it will never be taxed.
- While more volatile than traditional fixed income, we typically take a counter-cyclical approach by buying over time ("DCA") during periods of volatility.
- By compounding in a tax-deferred or tax-free setting, you can greatly accelerate your account values. So holding your most aggressive income-producing assets in ROTHs makes the most sense.
- High-quality and well-run CEFs are fantastic "buy-and-hold" investments but to produce additional alpha, we suggest a "buy-and-rent" approach of buying the dips and reducing at rich valuations.
For further details see:
How I'm Building A Tax-Free Portfolio With 8% Yields And Double-Digit Total Returns