Although taxable accounts are not the preferred option for retirement saving, they may be advantageous for one income households.
Not exact matches
Although many of the Fund's shareholders may not care about tax considerations, others do hold their Fund shares in
taxable accounts.
One caveat: If you're dealing with investments in
taxable accounts, selling could trigger a
taxable gain,
although you may be able to offset that gain by realizing losses in other holdings.
(A Roth IRA, Traditional IRA and
Taxable account for example,
although there are other examples of each type.)
But
although they are convenient in RRSPs and TFSAs, dividend reinvestment plans are usually not a good idea in
taxable accounts.
This option is my least favourite simply because it would raise my taxes and
although the returns would probably be higher than paying down the mortgage, it just wouldn't make sense to put money in a
taxable account when the TFSA is available.
Keep in mind that selling investments in
taxable accounts could trigger
taxable gains,
although you may be able to offset that gain with realized losses in other investments.
Although consisting mostly of long - term capital gains, the fund's recent substantial distributions (over 5 % of NAV in each of 2013 and 2014) made it less suitable for
taxable accounts.