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DSL. It's almost fairly valued, now. Not much of a discount. Is it worth buying here? Dividends are what's attracting me. Thanks. Can it be bought as a Trad. IRA? Roth a better idea at age 64, investing for heirs? My other stuff in IRA is all in OEFs, Traditional. https://www.morningstar.com/cefs/xnys/dsl/quote.html
I think that might depend on which type of CEF you want to purchase. As an example, it makes no sense to hold a muni CEF in an IRA because the dollars would be taxed on withdrawal. In other words, you simply need to determine the tax status of the income thrown off.
I just bought my first CEF (UTG) a few weeks ago in an IRA.
Attached is an article which touches on this topic:
I thank you for the responses! I checked out the links. The dividends would NOT be tax-free as with munis. The category is "World Bond." And I'd be using it for CURRENT income: holding the shares, but harvesting the monthly dividends. Another not insignificant point is that I just plain prefer monthly dividends rather than quarterly, or just once, at year's end. Then I don't have to do the balancing-act and the extra work with regard to using X amount THIS month, and holding onto X amount to cover NEXT month, and the NEXT, before the next div. comes in. If I could stand to live in the house I'm already in, finances would be simpler. But I just gotta get outa here. A personal preference, a personal need, a personal decision. Decisions about WHERE we will live are lined up. Just a matter of time. And making the numbers work. There's more than one way to skin a cat. Oops, is that too politically incorrect for 2018? You can't swing a dead cat without running into trigger-warnings these days. And there's nothing like a good, solid dead-cat bounce, eh? (Holy cow, DSL is holding 34% CASH according to Morningstar!)
If it's purely bond income, then it's taxed as ordinary income in your taxable account, and taxed identically when you'd withdraw the proceeds from an IRA.
Also, if you have a broker, they could likely confirm. I do know Schwab has resourcing in this area.
If it's purely bond income, then it's taxed as ordinary income in your taxable account, and taxed identically when you'd withdraw the proceeds from an IRA.
Also, if you have a broker, they could likely confirm. I do know Schwab has resourcing in this area.
No broker. And I will investigate at Schwab, Fidelity and maybe end-up using TRP brokerage since I'm already semi-married to them--- if I decide to buy-in. Trying to keep things simple, without needing to deal with a lot of separate fund families, brokerages, etc...... Does the lack of discount give you any pause here re: the share price vs. NAV? It is not shown to be OVER-valued, yet.
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https://static.seekingalpha.com/uploads/2018/6/17/47572571-15292516775190403.jpg
I just bought my first CEF (UTG) a few weeks ago in an IRA.
Attached is an article which touches on this topic:
https://investorplace.com/2017/08/10-investments-you-should-hold-in-an-ira/
and a good general article on CEF's which I found helpful
https://www.simplysafedividends.com/intelligent-income/posts/11-a-guide-to-investing-in-closed-end-funds-cefs
https://socialize.morningstar.com/NewSocialize/forums/p/385305/3954553.aspx#3954553
Also, if you have a broker, they could likely confirm. I do know Schwab has resourcing in this area.
No broker. And I will investigate at Schwab, Fidelity and maybe end-up using TRP brokerage since I'm already semi-married to them--- if I decide to buy-in. Trying to keep things simple, without needing to deal with a lot of separate fund families, brokerages, etc...... Does the lack of discount give you any pause here re: the share price vs. NAV? It is not shown to be OVER-valued, yet.