REITs - Real Estate Investment Trusts - Info & Discussion: Where to put REITs question

» bob90245 - Where to put REITs question

.
Since the dividends generated by REITs are taxable at ordinary income tax rates, it's best to place them in IRA accounts (rather than regular taxable accounts). I have made my 2004 Roth IRA contribution and did purchase Vanguard's REIT index fund. Next month, I will be getting a nice bonus from work and I want to purchase more fund shares of the REIT index. I am considering Vanguard's Variable Annuity REIT index fund. Just wanted to get feedback if this the right approach. Normally, one usually hears that variable annuities are to be shunned. But, in this case, it seems to be a valid choice. Yes, this will be retirement money and my asset allocation to REITs is sparse (under 5 percent) so I want to boost the allocation a bit.

Thanks in advance.

Bob

-- posted by bob90245