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[quote=Anonymous][quote=Anonymous]isn't this what is recommended - invest in stock that pays good dividend and reivest the dividend?[/quote] That was the recommendation way back when, when buying stocks in small quantities was difficult and expensive and the tax code had more loopholes. Nowadays the simplest thing is to buy a well indexed mutual fund according to your asset allocation, preferably in a tax sheltered vehicle. The Roth is a good choice if you might need the money before retirement as contribution can be withdrawn penalty free.[/quote]
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